The City of Cape Town’s Mayoral Committee has greenlit plans for inner-city affordable housing and mixed-use development of a municipal parking lot next to the Civic Centre in the CBD.

The site is currently used as an open-air staff parking facility, but has been identified as having potential for mixed-use development, including residential, commercial, retail and public space upgrades.

It is strategically located within Cape Town’s CBD Foreshore precinct, next to the City’s Civic Centre complex, and close to major public transport infrastructure.

Mayor Geordin Hill-Lewis says this development should also offer mixed-use opportunities for shops, offices, and parking.

“This is how we are making under-used public assets work for Capetonians with a broader land release pipeline of over 12 000 affordable housing units.”

The City says the sale of the land will result in an estimated income of R230 million plus R50 million in annual rates and services revenue to support service delivery.

Furthermore, it is anticipated that the redevelopment will amount to R1,5 billion in private sector investment, resulting in the creation of approximately 3,500 jobs in the construction and related sectors during both construction and the life cycle of the development.

James Vos, the Mayoral Committee Member for Economic Growth, says this project demonstrates the City’s commitment to acting in the best interests of the public.

“We are prepared to release underutilised City-owned assets where this can unlock far greater value for the economy, create jobs, attract investment and improve the urban environment. This Civic Centre parking site presents a unique opportunity to support inclusive growth while ensuring that well-located public land is used more efficiently for the benefit of all residents.”

Housing activists, Ndifuna Ukwazi, have welcomed this announcement as an important step toward addressing Cape Town’s housing crisis and spatial inequality.

They say it reflects a growing recognition that well-located public land should be prioritised for affordable housing rather than underutilised parking infrastructure or exclusive private development.

This is one of several exciting inner-city land-release initiatives that will together deliver thousands of well-located affordable units over time.

Others include the City’s Fruit & Veg site on Roeland Street, Harrington Square, several more sites in Woodstock and Salt River, and the City’s support for provincial-led projects at Buitengracht Street and Artscape.

Following the Mayoral Committee’s recommendation, the report will now be submitted to Council for consideration on 27 May 2026. Subject to Council approval, the City will start a formal public participation process, during which residents, stakeholders and interested parties will be invited to submit comments on the proposed redevelopment.