The V&A Waterfront, a cornerstone of Cape Town’s identity and a globally renowned destination, is embarking on a transformative R20 billion expansion project. This ambitious development aims to reshape the Granger Bay precinct through an extensive land reclamation initiative, adding 440,000 square meters of usable space to one of South Africa’s most visited locations.
Set to begin in 2025, this 15-to-20-year project is poised to redefine Cape Town’s coastline, combining urban innovation, economic growth, and sustainable development.
A Historic Undertaking
The expansion will increase the Waterfront’s total size by over 50%, making it the largest infrastructure investment in Cape Town since the 2010 FIFA World Cup. The Granger Bay precinct, currently home to landmarks like the Oranjezicht City Farm Market and the Oceana Power Boat Club, will transform into a vibrant mixed-use area. The development promises residential apartments, retail outlets, hotels, and cultural spaces, alongside essential public amenities such as a coastal promenade, rock pools, and a protected bay for water sports.
David Green, CEO of the V&A Waterfront, emphasized the importance of creating “a very publicly accessible coastal protection” to ensure the area remains inclusive and open to all. Public access to the shoreline will be safeguarded under the Integrated Coastal Management Act.
Balancing Vision and Practicality
The project builds on Cape Town’s history of land reclamation, including the creation of the Foreshore and earlier phases of the Waterfront. A phased approach ensures alignment with market demand and economic trends, while detailed environmental studies address concerns such as rising sea levels and severe weather events.
The first phase will focus on redeveloping existing land, including the area near the Table Bay Hotel, where a car park will give way to new public and leisure spaces. Meanwhile, iconic elements like the Oranjezicht City Farm Market will be relocated to preserve their cultural significance.
The development also highlights Cape Town’s commitment to sustainability and urban design. It will feature a blend of residential and leisure activities, ensuring a balanced, dynamic precinct that caters to locals and tourists alike.
Economic Impact
Already drawing 25 million visitors annually, the V&A Waterfront is South Africa’s standout performer in the real estate market. Co-owned by Growthpoint Properties and the Public Investment Corporation, the precinct generates significant revenue and demand for retail, office, hotel, and residential spaces. With 96% of its current land developed, the expansion provides a crucial opportunity to meet growing demand.
The financial framework includes an estimated cost of R20–R24 billion, with initial phases funded by additional debt of R4.5 billion. The project targets yields of 9–10%, with an ambitious 15% internal rate of return for the Granger Bay plan.
Looking Ahead
With construction approvals expected by mid-2025, this transformative initiative positions Cape Town as a leader in urban development and sustainable design. By combining economic growth with public accessibility, the V&A Waterfront’s expansion promises to enhance the city’s global reputation while creating a vibrant hub for generations to come.
This project is not just an investment in infrastructure but a commitment to Cape Town’s future as a world-class coastal destination.
