Government parking lot being turned into private apartments in Cape Town

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22-05-2026
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The City of Cape Town’s Mayoral Committee has approved plans for affordable housing and mixed-use development on a municipal parking lot at the Cape Town Civic Centre.

The site is currently used as an open-air parking facility for staff, but it has been identified as having much greater potential for mixed-use development. 

This includes opportunities for residential, commercial, retail, and public space enhancements.

Strategically situated within Cape Town’s CBD Foreshore precinct, the site is adjacent to the City’s Civic Centre complex and is in close proximity to major public transport infrastructure.

“We are recommending that this parking lot be released by the City to unlock yet another affordable housing development right in the heart of the inner-city,” said Mayor Geordin Hill-Lewis.

“The development should also offer mixed-use opportunities, for shops, offices, parking and so on. 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,” he said.

The redevelopment project is expected to provide long-term benefits, including:

• Estimated sale income of R230 million, along with R50 million in annual rates and services revenue to support service delivery.
• An estimated R1.5 billion in private sector investment for the Central Business District (CBD).
• The creation of 3,500 jobs in the construction and related sectors during both the construction phase and the ongoing life cycle of the development.
• Opportunities for residential housing, including affordable options.
• Continued regeneration of the Foreshore precinct.

Part of a bigger plan

“This project demonstrates the City’s commitment to acting in the best interests of the public,” said  Mayoral Committee Member for Economic Growth Alderman James Vos.

“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,” said Vos.

“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,’ he said.

He said that the City’s Human Settlements department will support planning processes for this site to maximise affordable housing opportunities resulting from this development. 

This initiative is part of several inner-city land releases that will collectively provide thousands of well-located affordable units over time.

Other locations include the City’s Fruit & Veg site on Roeland Street, Harrington Square, and additional sites in Woodstock and Salt River.

The City is also supporting provincially-led projects on Buitengracht Street and at Artscape.

Councillor Carl Pophaim, the Mayoral Committee Member for Human Settlements, stated that this initiative represents a significant step forward in addressing housing needs.

Following the Mayoral Committee’s recommendation, the report will be submitted to the Council for consideration on 27 May 2026.

Subject to Council approval, the City will initiate a formal public participation process. During this process, residents, stakeholders, and interested parties will be invited to submit comments on the proposed redevelopment.