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Port Elizabeth’s central district is perfectly ripe for the kind of inner city upgrading that is so visible in Durban and Cape Town. However, despite the tax incentives available within South Africa’s official Urban Development Zones, which to date include the “Friendly City”, it still lags behind its coastal counterparts when it comes to private sector take-up. This is according to Cor van Deventer, one of the directors of Greyvensteins Attorneys, a member of the national Phatshoane Henney Group of Associated Firms.

The Urban Development Zones tax incentive scheme was founded in 2003 as a way to address urban decay in city centres throughout South Africa. The concept, to date, has worked well in other countries, and is surely steadily gaining momentum throughout South Africa. Port Elizabeth, however, despite its potential seems to have lost the impetus evident throughout the refurbishment of places like Donkin Square, only a few years previously.

Ideally Positioned For Redevelopment

Port Elizabeth offers a wealth of old and stagnant buildings which are ideally positioned close to its waterfront, offering some amazing sea views. These buildings offer incredible potential to be redeveloped into commercial entities, rental accommodation or low cost housing units in line with the Urban Development Zones tax incentive. This tax is applicable to both renovations and new buildings, in designed zones.

Whether it’s because businesses and developers aren’t aware of the Urban Development Zones tax rebates, or they aren’t claiming back possibly because of the perception of being caught up in red tape, they are missing out on a golden opportunity save hundreds of thousands, if not millions of rands in tax deductions.

They also have the opportunity, at the same time, to be part of the economic growth and regeneration of the city. One only needs to look at the thriving areas and business districts in success stories like Cape Town and Durban to judge the efficacy of the Urban Development Zones tax incentives on the regeneration of inner city areas.

Image courtesy of : SouthAfrica.TO