DEVELOPMENT
Keep up with
Urban Renewal Trends
BY WAYNE VAN DER VENT
There ’ s a burst of urban renewal stimulating economic growth and business innovation . This movement is also enhancing property values and creating profitable opportunities for commercial and retail property developers and traders .
Major South African cities are seeing their urban spaces reclaimed , abandoned , dilapidated buildings restored to their former glory , and their skylines transformed through innovative developments with contemporary architecture .
Central business districts in Cape Town , Johannesburg and Durban are being refurbished with urban renewal trends . This urban renewal improves both business sentiment and perceptions , encourages a sense of civic pride , lowers crime as well as attracts investment and new businesses . The South African CBDs ’ concentrated regeneration is also a clear sign that the country ’ s urban population is expanding . “ Urban renewal leads to a substantial increase in overall property values ( including commercial , retail and residential ), while urban population growth places an increased demand on infrastructure and transport structures ,” says Wayne van der Vent , cofounder of Quoin Online , an online property trading portal .
In Johannesburg , the CBD , Braamfontein and Newtown nodes show clear evidence of inner-city renewal , while much of Jozi ’ s downtown has been upgraded , boasting a medley of arts , entertainment ,
food and shopping venues . The South African Property Owners Association ( SAPOA ) says the Johannesburg office market last year showed the highest development pipeline ever recorded , with various flagship developments scheduled for completion over the next two years . Durban is also undergoing major regeneration with reports indicating future projects including the reclamation of areas such as Albert Park , the CBD and Victoria Embankment . In Cape Town , the CBD is changing its entire footprint . According to The State of Cape Town Central City Report 2015 , published by the Cape Town Central City Improvement District ( CCID ), downtown Cape Town ’ s official valuation was almost R24 billion in the 2014 / 2015 financial year , an impressive growth from just over R6.1 billion in 2006 . The overall decline in commercial vacancies is expected to continue this year with vacant commercial space in the CBD decreasing considerably to 10 % by the final quarter of 2015 , from 13.4 % in the same quarter of 2014 . Retail has also been faring well , with an overall occupancy rate of 95 % during 2015 , up from 93 % in 2014 , says the CCID ’ s report . Eight out of 10 businesses are likely to remain in the CBD , with one in every three still likely to expand . SAPOA says that major financial institutions continue to establish a financial district in Cape Town , making the city appealing to both local and international tenants who view the city as a strategic location .
46 OCTOBER 2016 SA Real Estate Investor www . reimag . co . za