Real Estate Investor Magazine South Africa August/September 2019 | Page 17

INNER CITY DEVELOPMENT
Downtown Students’ Accommodation
Pockets of Excellence
“The economic future of the Inner City of Joburg
has never been brighter, because the City continues
to harness the energies of investors to “Join the 2nd
Gold Rush” and proliferate “Pockets of Excellence”
in the “Heart of the City of Gold”
“The Creative Precinct” along Main Street extends
from the Gandhi Square to the Maboneng Precinct.
It comprises the Fox Street pedestrianized groove,
the Carlton Centre office and retail district. The
Skyrink TV and Film Studios anchors the emerging
Film District along the precinct, while the ABSA Bank
Towers boasts the modern and greenest Financial
District on the African Continent. The extensive
office redesigning and refurbishment of the Rand
Daily building along the precinct injects upmarket
business environment leading all the way to the
international popular and vibey Maboneng District.
The Johannesburg UDZ Boundaries
The Johannesburg Urban Development Zone
is about 1,800 hectares and encompasses the
entire core of the Inner City from Fordsburg to
Jeppestown, and from Bellevue to the M2 in the
south. It includes Newtown, Hillbrow, Braamfontein,
Yeoville, Troyville, Doornfontein, Ellis Park, Bertrams,
Ferreirasdorp, Selby, Wolhuter, Vrededorp,
Marshalltown, City and Suburban, Fairview and
Benrose.
Features of the UDZ tax incentive:
Promulgated in 2004 for Joburg & Cape Town
Amendment to Income Tax Act has accelerated
depreciation on investment on new construction or
renovation of income generating buildings in Inner
City.
For new construction the depreciation For renovations the depreciation
allowance are calculated as follows: allowance are calculated as follows:
25% for 4 years 20% each year for 5 years
20% in 1st year of operation For affordable accommodation
8% in subsequent 10 years 25% for 4 years
SA Real Estate Investor Magazine AUGUST/SEPTEMBER 2019
15