R8,4 bn human settlements budget for upgrading informal settlements, Council flats, serviced plots provision, subsidy housing

12 August 2025

Over the next three years, the City’s Human Settlements Directorate plans to spend a total of more than R8,4 bn to deliver human settlements opportunities, against all odds.

‘Over the next three years, we will see human settlements delivery against all odds.

‘Our focus areas include R1,5 bn for upgrading of informal settlements to respond to the reality of growing informality, while offering access to the housing market with increased focus on serviced plots with a planned investment of R1,3 bn; an increased injection into public housing with approximately R2 bn foreseen over the medium term and tangible action to tackle the phenomenon of unlawful occupation and low rental payments. Then, with a view to especially elderly, child-headed households and beneficiaries with disabilities, some R930 m is allocated to formal subsidy housing. The delivery of more affordable housing opportunities for those earning between R1 850 and R32 000 p/m also remains an increasing priority.

‘Together with the dedicated human settlements officials, I have looked at our most urgent interventions required for the tectonic shifts that are required in human settlements provision. While so much is dependent on national developments and strategies, as a City we remain absolutely committed to our most vulnerable residents and also those who require access to affordable housing, which is a growing priority not only in Cape Town and South Africa, but in most cities across the world.

‘Delivering human settlements against all odds means an aggressive and sustained cultural shift to take back our Council flats and restore pride and cultivate a positive culture of paying for services to generate the much needed revenue to viably provide quality services to our communities. It also means finding new ways to reduce the impact of the construction mafias that have a profound impact on human settlements and other service delivery across the metro. Looking at means to increase the access to human settlements opportunities, through informal settlement upgrade and access to serviced plots, as well as looking at ways to enable more affordable housing developments remain key interventions required to cater to the growing inward migration to Cape Town.

‘We continue to spend the majority of our budget and our grant funding expenditure is very high, showing our commitment to the most vulnerable residents.

Grant funding spend:

‘Through our flagship priority land release programme, the City has in the last two years released land parcels offering over 4 000 residential opportunities now available for affordable development and we have a portfolio of approximately 5 000 constructed and completed Social Housing units in well-located areas across the metro.

‘We have some 12 000 opportunities for affordable rental housing opportunities in the pipeline in urban centres across Cape Town.

‘We’re Building our City of Hope, but we are only as strong as our most vulnerable resident. Human settlements delivery, greater access to affordable housing and enhancing services to those most in need is fundamental to the building blocks of our City of Hope. We are renewing our commitment to our residents and we accept the challenge, great as it may be. We invite our private and civic sector partners to join us because we cannot go it alone,’ said the Mayoral Committee Member for Human Settlements, Councillor Carl Pophaim.

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Published by:
City of Cape Town, Media Office