Cape Town offers best property rates of SA’s cities for 2024-25
18 April 2024
The City of Cape Town offers the lowest property rates for Commercial, Industrial, and Residential properties, based on an analysis of the 2024/25 draft budgets tabled by each metro.
The cent-in-rand rate is a statutory formula used by municipalities to calculate property rates. The formula shows how much a person would pay in rates for every rand of their property value.
Based on this formula, Cape Town offers the lowest property rates of all metros for both residents and businesses in 2024/25.
Cape Town's property rates are lower than the next metro, Joburg, by 32% for commercial, 36% for industrial, and 28% for residential properties.
'Cape Town has a simple message for owners of businesses, large and small: move your business to Cape Town for SA's best property rates, reliable service delivery and infrastructure, and the most advanced plans to end load-shedding.
'Besides saving on costs, our Investment Incentives Policy makes it much easier to move your business to our region, or to start something new entirely.
'There are many opportunities to explore in manufacturing, the green economy, call centres, events, hospitality, technology, retail, and much more.
'Since the start of this term of office in November 2021, Cape Town has added 363 000 new jobs, according to StatsSA. The City further expects to create around 130 000 construction-related jobs over three years via infrastructure investments linked to our new Building for Jobs Budget.
'Our mission is to make Cape Town work by investing, on an unprecedented scale, in the city's infrastructure – with projects worth R120bn over ten years, as we prepare to overtake Joburg as SA's most populous city and economic hub.
'Cape Town will invest more in infrastructure than all three Gauteng metros combined over the coming three-year medium-term budget framework (R39,7bn vs a combined R38,5bn). In fact, Cape Town's three-year infrastructure budget is 80% larger than the next metro, Joburg (R22bn), and 98% larger than the third biggest, eThekwini (R20bn),' said Mayor Geordin Hill-Lewis.
As part of Cape Town's plans to be Africa's easiest city to do business, the City recently launched a new Ease of Doing Business Index to track and improve ten critical indicators for ease of doing business, including building plan approvals, land-use rights, rates clearance certificates, and connections to electricity and water.
2024-25 Cent in Rand - Residential
Cape Town - 0.006631
Johannesburg - 0.009213
Mangaung - 0.010602
Ekurhuleni - 0.011520
Tshwane - 0.012200
eThekwini - 0.013619
Buffalo City - 0.015000
2024-25 Cent in Rand - Commercial
Cape Town - 0.015582
Johannesburg - 0.023033
Ekurhuleni - 0.023050
Tshwane - 0.030510
eThekwini - 0.034650
Mangaung - 0.036056
Buffalo City - 0.037400
2024-25 Cent in Rand - Industrial
Cape Town - 0.014742
Johannesburg - 0.023033
Ekurhuleni - 0.028810
Tshwane - 0.030510
Mangaung - 0.036056
Buffalo City - 0.037400
eThekwini - 0.044576
*Nelson Mandela Bay 2024/25 formulas unavailable at the time of writing. NMB 2023/24 formulas: Residential (0.012073), Commercial (0.024146), Industrial (0.030183).
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Published by:
City of Cape Town, Media Office
