02/10/2025
The City of Cape Town introduced Incentive Overlay Zones in selected areas on 1 October - these special zoning overlays are aimed at making development easier and more cost-effective in these areas.
"What is an Incentive Overlay Zone (IOZ)?
An IOZ creates a special zoning area with special provisions, over and above the base zoning’s existing provisions.
Property owners whose properties fall within an IOZ get additional or enhanced development rights, such as height, floor factor, coverage, setbacks and additional use rights. Should the new proposed development comply with the rules of the IOZ, only a building plan application is required.
In all other areas in Cape Town where developers want to increase the development opportunity of a site over and above what is being allowed for as part of its current zoning, they are required to follow a land use application process and submit a building plan application to the City for assessment – thus, they have to comply with at least two application processes."
In June, the City of Cape Town’s Council approved several amendments to the Municipal Planning By-law that regulates development and land use in the city. One of the key initiatives for making it easier and more cost-effective to develop in Cape Town, is the introduction of an Incentive Overlay Zone (IOZ) for Development Focus Areas in Athlone, Maitland, Parow/Elsies River, Bellville and Diep River. The IOZ for these areas has been approved and promulgated, taking effect as of today, 1 October 2025.
See: https://bit.ly/3ILuC7J