MAIN IMAGE: Gordon Hill-Lewis – Cape Town Mayor, Warren Hewitt – CEO of the Greater Tygerberg Partnership, Alderman Eddie Andrews – the City’s Deputy Mayor and Mayoral Committee Member for Spatial Planning and Environment, Morné Vorster, Denis Dunn & Tony Smit – owners of Harcourts Dunn, and Anthony Evert – property practitioner at RE/MAX Unlimited
Senior writer
Cape Town’s Council has approved several amendments to its Municipal Planning By-law (MPBL) to facilitate construction and development within the city. These new land rights will enable the development of affordable rental units in high-demand areas, allowing more people to transition out of the informal housing sector into more dignified rental units. The revisions also aim to streamline development planning processes, accommodate advancements in the renewable energy sector, and enable the City to stop illegal building work by impounding movable property.
“These by-law changes will blow open the property development industry for thousands of new micro-developers in townships, informal, and lower-income suburbs, which have, over the past decade, experienced very rapid densification of backyard dwellings and other less formal structures,” said Mayor Gordon Hill-Lewis. “The City will now be better able to incentivise and regulate development in these areas so that units can be of a better quality, safer, compliant with National Building regulations, and importantly, legally connected to services such as water, sanitation, and electricity.”
Warren Hewitt, CEO of the Greater Tygerberg Partnership, agrees with the Mayor in welcoming the amendments. “By legalising and incentivising small-scale rental units–”especially in high-demand areas like Bellville–”the City is acknowledging the vital role that micro-developers can play in delivering dignified, affordable accommodation”.
Which areas are being targeted and how will it affect the property market?
Bellville (along with Athlone, Maitland, Parow/Elsies River, and Diep River) is one of the key focus areas under the new incentive overlay zone provisions, and this could be transformative for the suburb that is a major transport and economic hub. “The area has seen increasing pressure for affordable rental accommodation–”particularly from students, young workers, and lower-income families,” says Hewitt. “This bylaw opens up new possibilities for property owners and first-time developers to legally densify and contribute to the local economy.”
Owners of Harcourts Dunn, Morné Vorster, Denis Dunn & Tony Smit, who specialise in Belville, concur, “The amended by-law is a positive step toward making the rental and housing market more accessible and affordable for lower- to middle-income earners in Bellville, where we have seen demand for affordable accommodation continuing to outweigh supply.”
The market for affordable housing in these areas urgently needs safer and more sustainable housing options. The City’s new proposed by-laws and support for legal, small-scale developments will most definitely enable growth and create more opportunities for the construction and real estate sectors.”
Anthony Evert, property practitioner at RE/MAX Unlimited, believes, “From a property owner’s standpoint, the by-law raises significant concerns about the capacity of existing infrastructure to absorb increased density. Without clear safeguards, community consultation, and infrastructure upgrades, this initiative could unintentionally accelerate urban deterioration rather than uplift communities.
If done well, I agree that this initiative could become a template for urban transformation across South Africa. If done hastily, it risks becoming a cautionary tale. The choice lies in how we balance ambition with accountability”.
The role of the Greater Tygerberg Partnership
Hewitt says that this is where Greater Tygerberg Partnership will become involved, “to help guide this process to balance growth with quality of life for all residents.”
If done well, says Hewitt, with safe, regulated, affordable housing integrated into existing neighbourhoods, he expects to see a rise in micro-developers, a boost to the local construction economy, and an expansion of the rental market.
This is a pioneering step for Cape Town, and one that Hewitt believes other municipalities should observe closely. “The combination of targeted zoning changes, incentive overlay zones, and development support for micro-developers is a practical response to the housing crisis. If successful, it can become a template for cities across the country grappling with urban sprawl, informal housing, and limited housing budgets.”
More importantly, it also brings much-needed regulation, safety, and access to essential services to a segment of the market that has been largely informal. “That said, we must also be realistic: the success of this initiative depends on proactive implementation, infrastructure readiness, and community engagement. It’s not just a planning issue–”it’s an urban management one.”
Support from other strategic measures
The amended by-law will run alongside various other strategic measures under the Mayoral Priority Programme for affordable housing and land release, including:
- Hands-on support for micro-developers in the form of pre-approved building plans and development charge discounts from a new incentive fund.
- Releasing more land for affordable housing in this term of office than in the past 10 years, with a pipeline of 12,000 well-located affordable housing units close to the CBD and other important parts of the metro.
- Publishing Land Discount Guidelines allowing city-owned land to be heavily discounted to maximise the number of social housing units that can be viably developed – a national first.
- Utility discounts for Social Housing developments on water, electricity, and property rates bills, another first.
Other new revisions aim to regulate the installation of renewable energy structures such as solar roof panels and wind turbines.
Putting a stop to illegal building work
The City will also have immediate recourse in situations where developers continue with illegal building work despite an order to stop work. “This new addition not only allows the City to impound the developer’s movable property but also that belonging to the owner of the said movable property and that belonging to the contractor involved in the illegal work–”this is to close any loopholes,” explains Alderman Eddie Andrews, the City’s Deputy Mayor and Mayoral Committee Member for Spatial Planning and Environment. “By adding this provision, we trust that those who ignore the Municipal Planning By-law and notices issued in terms of the National Building Regulations and Building Standards Act will think twice before doing so.”
Mayor Hill-Lewis sums up: “I believe this is the only workable plan in South Africa for reducing informality over time, and we are excited to see the benefits for micro-developers, property owners in low-income communities, and everyone who dreams to move their family from informal housing to dignified, affordable accommodation.”
The revised MPBL is currently in the process of being promulgated.
