Real Estate Investor Magazine South Africa November 2019 | Page 5

City of Joburg attracts over
R30bn in property investment
O
ver R30 billion investment is pouring into the
City of Johannesburg following the release of
almost 140 properties to private developers
since the start of the year.
A total of 55 properties along the Orange Grove and
Houghton Estate transport node, with an investment
value of R10 billion, were recently released as part of the
expansion of our Inner City Rejuvenation Programme.
The developments will cater for students and provide
affordable residential accommodation. This latest
investment drive forms part of the multi-party
government’s promise of rejuvenating the Inner City. The
project is to be expanded to other parts of the City of
Johannesburg.
Johannesburg has a housing backlog of about 300 000
units and the Inner City Rejuvenation Programme will go a
long way towards alleviating that anomaly.
The programme is also expected to help drive much-
needed redevelopment of suburbs as well as travel nodes
beyond the Inner City. It is envisaged that this massive
investment will accelerate economic growth of the City of
Johannesburg to at least 5% a year.
The recent release adds to the R22 billion investment
value from the 84 properties that were released to private
developers in April. These developments are expected to
generate 11 000 direct construction sector jobs at a time
when the economy is bleeding jobs.
As the City of Johannesburg transforms into a metropolis
in which more residents live closer to their places of work,
it is equally important that development happens along the
main transport nodes.
The Executive Mayor of the City of Johannesburg,
Councillor Herman Mashaba, says the multimillion rand
investment will radically transform the current racially
skewed spatial development and accommodate poor
communities closer to places of work and leisure.
“We intended to change the Inner City into a construction
site as we seek to create more jobs and improve the
Johannesburg economy. When Joburg works, South Africa
works,” says Mayor Mashaba.
The developments in Orange Grove and Houghton Estate
are close to the Bus Rapid Transport (BRT) system and will
help ensure students have affordable accommodation
in a safe environment and that public transport is easily
accessible.
The release of properties to developers is a clear indication
that the private sector is regaining confidence not only in
the Inner City, but also in other areas that had slowly fallen
into decay, which bodes well for the economy.
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