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Urban Development Zone

OVERVIEW

operty regeneration and growth through tax incentives.

luplace Properties is investing in providing accommodation in centralbelieves Johannesburg. the rental market has In order to fight urban decay and to encourage investment in inner cities, a tax incentive was created called the Urban Development

Zone tax incentive. UDZs Johannesburg and Cape Town order to fight urban decayThe and tofor encourage investment inwere inner first allocated in 2004. The inner city of Johannesburg, comprising ties, a tax incentive was created that applied to major South African just less than 18km², is the largest UDZ in South Africa and it is ties. This is called theitsUrban Development Zone tax incentive. The expanding footprint. Making inner more liveable is afirst global trend. Theinmove DZs for Johannesburg andcities Cape Town were allocated 2004. back to cities is spurred partly by the relative cheapness of property inner city of Johannesburg, comprising just less than 18km², is the in CBDs, legislation encouraging inner-city investment and even a est UDZ in South Africa it is expanding perception thatand suburbs are boring. its footprint in response Private that developer Properties has purchased nine large gnificant successes haveIndluplace been achieved. apartment blocks, one of which is shown above, taking its total he Urban Development Zone tax allowances (Section 13quat) buildings in central Johannesburg CBD, Berea and Hillbrow to 23: vide for an 33% accelerated on the costs of the units depreciation are bachelor pads,allowance 22% are two-bedroomed flats. of dings erected, to, extended improved inside a UDZ. The The added listed company (its majoror shareholder is Arrowhead) intends to “aggressively grow(SARS) its portfolio” high-yielding as it to th African Revenue Service has of extended theproperties incentive March 2020. Municipalities can apply for extension to the existing ONLINE RESOURCES Zs via the National Treasury. There are five requirements to qualify Black Business Council in Built Environment: www.bbcbe.org UDZ tax deduction. These relate to the building, the nature of the Construction Industry Development Board: www.cidb.org.za Z, trade considerations, specifics of Authority: ownership and to the dates Constructionthe Industry Training www.ceta.org.za South African Property Owners Association: www.sapoa.org.za he applications. The fact that the incentive has been extended to 0 gives investors a good chance to take advantage of favourable ditions in Johannesburg. 101 has plans to he Johannesburg Social Housing Company (Joshco) vide affordable rental accommodation in 12 inner-city buildings were recently identified for that purpose. But the main target for

huge potential. The developers of the trendy reaching out Maboneng to other areas a Precinct are also very upbeat. regions on the city’s outskirts. T Boost Property Management wants to achieve nothing l is city building a 10-storey apartment Hillbrow. The thanblock the in“structural transform R40-million Kaptejn Corner will tion of the inner city’s econom have 128 apartments. and An physical innovativelandscape”. approach to unlocking the of value of land The City Johannesburg h inidentified the traditional areas is unthe following nodes der consideration. The housdevelopment: ing agency of the Limpopo • C a r l t o n AgencyP r e c i n Economic Development (LEDA) hasJohannesburg’s proposed a plan for tall the conversion of Permissions to building attracts touri Occupy (PTO) to title deeds in revamp; S deep rural undergoing areas such as Vhembe and Sekhukhune. National Rink TVThe and film studio b Home Builders Registration ing developed; conferen Council (NHBRC) will consider centre planned. the proposal.

Park Station: intermo node catering for cars, b SOUTH AFRICAN 2019 and ta es, railBUSINESS commuters Gautrain link to OR Tam International Airport; w •

South African Business 2019  

South African Business 2018 is a trade and investment journal for public and private entities either based in South Africa or looking to tra...

South African Business 2019  

South African Business 2018 is a trade and investment journal for public and private entities either based in South Africa or looking to tra...

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