The City of Cape Town has taken a major step towards expanding affordable housing opportunities in the CBD after the Mayoral Committee approved plans to redevelop a municipal parking lot at the Civic Centre into a mixed-use precinct. The proposal will now go before Council on 27 May 2026 for approval to begin a formal public participation process.
The site, currently operating as an open-air staff parking facility, has been identified for redevelopment into a project that could include affordable residential units, commercial space, retail outlets and upgraded public areas. Located in the Foreshore precinct alongside the Civic Centre complex, the property is positioned close to major public transport routes and key economic hubs.
According to the City, the redevelopment could unlock approximately R1.5 billion in private sector investment while generating an estimated R230 million from the sale of the land. The project is also expected to contribute around R50 million annually in rates and service revenue once operational. Officials estimate that roughly 3 500 jobs could be created during the construction phase and throughout the long-term lifecycle of the development.
The project forms part of the City’s broader affordable housing land release programme, which includes planned developments at sites in Woodstock, Salt River, Roeland Street and Harrington Square, as well as support for provincial housing initiatives near Artscape and Buitengracht Street.
If Council approves the next phase, residents, stakeholders and interested parties will be invited to comment on the proposed redevelopment through a formal public participation process in the coming months.
