Cape Town CBD braces for construction boom
Business growth and infrastructure in the Cape Town CBD is outpacing other metros across South Africa, with the proposed construction worth almost R8 billion scheduled to be rolled out in the city over the next five years.
The investment into new developments has significantly increased. Additionally a total of US$126.9 million has been set aside in the past year for construction within the 1.6-km2 central city areas.
Fourteen major buildings in the CBD will either be renovated, expanded constructed from scratch. An additional five buildings are at the planning stage and two more are proposed for a facelift.
Currently all the property in Cape Town’s CBD is valued at ±US$1.6 billion, four times as much as 10 years ago.
The Central City Improvement District (CCID) on Tuesday released its fourth State of the Cape Town Central City Report on, highlighting last year’s major developments in the inner city.
Currently the CBD accounts for 25% of the metropole’s economy and around 30% of its workforce. Of new developments still under way, R1.76bn is private sector investment, while the public sector is investing US$7.6 million, mostly to renovate existing government building.
86% of the businesses which took part in online business surveys used to prepare the report said they would continue doing business in the CBD while 30% were contemplating of expanding their operations in the central city.
Hotel accommodation and residential units worth US$108.5 million are also under construction.
Four hotels under construction will add 1,400 beds in the CBD by next year while two Tsogo Sun hotels will add 500 rooms.
Triangle House is to be refurbished into a Radisson Blu hotel and is expected to produce 11 floors of five-star hotel and 11 floors of luxury apartments. 200 more residential units will be built in the inner city in the next year.