Property developers to probe delays in Western Cape
Concerned about slow development processes in the Western Cape, the South African Property Owners Association (Sapoa) has commissioned a study into the value of the private property sector in the province, and the economic costs of inefficient property development processes.
Development economists UrbanEcon are assessing the size and scope of the private commercial and industrial property sector and - more importantly - laying bare the risks associated with the property development process.
Preliminary numbers in the draft report, titled The Role and Impact of the Commercial Property Sector - Western Cape Province, show the private property sector contributes significantly to the Western Cape economy. It contributes 9 percent, or R23 billion, in construction and property management activities.
'In 2011, private property management and private construction contributed R604 million and R341m in provincial taxes, respectively,' says Sapoa chief executive Neil Gopal.
The sectors also account for about 135 000 jobs. The study has two key goals. 'The first is to quantify the size and scope of the commercial and industrial property sector in the province,' says Gopal. 'The second is to investigate the development process and the time it takes. A key element is unpacking the regulatory environment and tracking applications to pinpoint potential or actual delays.'
Sapoa will release its findings once the report has been finalised.