Incentive Overlay Zone takes effect to boost development in specific areas

01 October 2025

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.

The IOZ is included in the revised Municipal Planning By-law (MPBL) and applies to five Development Focus Areas in Athlone, Bellville, Diep River, Maitland, and Parow/Elsies River. The IOZ assigns additional and enhanced development rights to properties that fall within these zones, as envisioned by the approved District Spatial Development Frameworks.

‘An IOZ is an important tool to enable and stimulate mixed use development in specific locations. It also simplifies regulatory processes because only a building plan would be needed for proposed developments that comply with the rules of the IOZ. In these cases, no land use application would be required, which means it speeds up permissions, and in so doing, all involved can save time and costs.

‘At the start of our term of office, we made the commitment of Ease-of-Doing-Business in Cape Town. The IOZ in these areas is intended to encourage investment and development in prioritised areas, as stipulated in the City’s Integrated Development Plan, Municipal Spatial Development Framework and District Spatial Development Frameworks,’ said the City’s Mayoral Committee Member for Spatial Planning and Environment, Alderman Eddie Andrews.

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.

Benefits of an IOZ

The IOZ makes it easier to develop as it only requires a building plan submission if the proposed development complies with the rules of the IOZ
It simplifies regulatory processes and requirements as the IOZ allocates a basket of additional development rights and use rights to the properties that fall within the IOZ
It speeds up permission, saving developers and property owners time and costs
It supports the City’s commitment to Ease-Of-Doing-Business in Cape Town
It enables development in areas prioritised for mixed use, such as Development Focus Areas

The IOZ is now effective for five Development Focus Areas (DFAs) in:

Parow/Elsies River – the DFA is located along the Voortrekker Road Corridor, and bounded by the railway line in the south and crosses Voortrekker Road to the north
Diep River – the DFA is a district node intended for mixed-use intensification, located at the intersection of Kendal Road and Main Road
Maitland – the DFA is an important node on Voortrekker Road, offers a diversity of land uses, is highly accessible and close to the Cape Town and Bellville CBDs
Bellville CBD – the DFA includes the main CBD area, rail station, public transport interchange and extends along Voortrekker Road and along Durban Road to the north
Athlone CBD – the DFA is located along the Klipfontein Corridor, and includes Klipfontein Road, Aden Avenue, and the rail station

Visit the IOZ webpage https://bit.ly/MechanismsandIncentives to access helpful documentation:

• Detailed Maps of the five designated areas
• Enhanced Rules applicable within the IOZ zones
• IOZ Viewer & Navigation Guide to digitally check if your property qualifies
• IOZ Operational and Design Manual to help interpret the rules and guide your application process
• IOZ Summary Pamphlet for a quick overview

Caption: The map depicts the Development Focus Areas in Maitland, Bellville, Parow/Elsies River, Eerste River, and Athlone where the Incentive Overlay Zone now applies in terms of the City’s revised and approved Municipal Planning By-law.

End

Published by:
City of Cape Town, Media Office

municipal planning by-law development