A major real estate project in the northern suburbs of Johannesburg, named the Bankenveld District City, has recently received Competition Commission approval. Developers Eris Property Group and Calgro M3 are purchasing 150 hectares (371 acres) of land from the University of Witwatersrand for R200 million ($10.8 million). The project will deliver 20,000 to 30,000 housing units priced between R500,000 and R1.5 million ($27,000 to $82,000), addressing the growing demand for affordable housing in the area. It will also feature commercial, retail, and industrial spaces, educational and healthcare facilities, and create 15,000 jobs.
Source: Emerging Real Estate Digest
This week a major real estate development in the northern suburbs of Johannesburg received approval from the Competition Commission for the developers to purchase land for the project. The project is named the Bankenveld District City in Sandton, Johannesburg.
Competition Commission approval was required for this land acquisition since it involves a significant portion of land to be used to develop a new urban area, some even referring to it is a "city".
The developers, Eris Property Group and Calgro M3 plan to purchase portion 5 of the Farm Bervallei 37 for the project from the current owner, the University of Witwatersrand, for R200 million (i.e., $10.8 million). The 150-hectare (i.e., 371 acres) site is strategically located in a growth corridor earmarked for urban development.
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The project is aimed at delivering between 20,000 and 30,000 housing units, with prices ranging from about R500,000 to R1.5 million (i.e., $27,000 to $82,000) making it a significant contribution to affordable housing in South Africa. This represents about 5% of the total housing market in Johannesburg, where demand for affordable housing has surged by 12% annually, according to some estimates.
In addition to residential units, the development will also include 200,000 square meters of commercial space, 50,000 square meters of retail space, and 100,000 square meters of industrial space. Educational and healthcare facilities are planned, with five primary schools, three secondary schools, and a 200-bed hospital included, thereby creating a comprehensive and sustainable urban environment.
The project has been well-received by local stakeholders, with support from the City of Johannesburg and the Gauteng Provincial Government. It is expected to create approximately 10,000 construction jobs and 5,000 permanent jobs upon completion. The project includes plans for 30 hectares of green spaces, public parks, and recreational areas, as well as innovative waste management and water conservation systems. The development aims to reduce water usage by 30% through greywater recycling and rainwater harvesting systems.
The area is well-connected to major transport routes, including the M1 and N3 highways, and is in close proximity to key business hubs and amenities. The development is located 20 kilometers from Sandton, Johannesburg’s main business district, and 15 kilometers from OR Tambo International Airport, making it highly accessible for residents and businesses alike.
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