The City of Cape Town has approved significant amendments to its Municipal Planning By-Law (MPBL), aiming to boost the development of affordable rental housing in high-demand areas. These changes are designed to provide more housing opportunities, especially for residents currently living in informal or overcrowded backyard structures.
A key feature of the revised by-law is the introduction of new land-use rights that allow small-scale affordable rental units to be built in areas zoned for residential use. Property owners can now legally develop up to eight rental units plus a main dwelling, or up to twelve units on vacant land. This shift supports the formalisation of housing in lower-income suburbs and helps meet growing demand in these communities.
To support this initiative, the City is rolling out several complementary measures. These include offering pre-approved building plans, reduced development charges through an incentive fund, releasing more municipal land for affordable housing, and providing substantial discounts on City-owned land for qualifying projects. In addition, utility discounts will be made available for social housing developments.
Incentive overlay zones (IOZs) have been introduced in focus areas such as Athlone, Maitland, Parow/Elsies River, Bellville, and Diep River. These zones allow for enhanced development rights, making it easier and more cost-effective to pursue mixed-use projects that include affordable housing and are supported by public transport infrastructure.
The by-law revisions also strengthen enforcement measures. Where developers continue illegal construction after receiving stop-work orders, the City now has the authority to impound moveable property involved in the activity, including assets belonging to developers, owners, and contractors. This aims to reduce non-compliance and minimise disruption to local communities.
Additional changes include clearer rules for installing renewable energy systems such as rooftop solar panels and wind turbines, updated emergency housing provisions for disaster response, and streamlined digital communication with residents via email notifications.
This five-year review of the MPBL reflects Cape Town’s broader strategy to create more inclusive, regulated, and sustainable urban growth. The reforms aim to enable safer housing, support small-scale developers, and ensure that urban development aligns with national building standards and long-term city planning goals.
With these changes, Cape Town is setting the stage for a more responsive and resilient real estate sector that better serves its growing population.
