Positive Cashflow Investments In The Inner City Suburbs
Category Advice
The government in Gauteng has promised an increase in contribution to improve the condition of the city’s inner suburbs. This promise of increasing investment will benefit the ailing central business district or CBD of Johannesburg, including areas such as Berea, Yeoville, Braamfontein, and Hillbrow. This will have a positive effect on investment property in the CBD and surrounding areas.
The former finance Minister, Trevor Manuel, has set up some policies that have led to a first time ever surplus in the budget revenue of the provincial government of Gauteng.
Thus the provincial government could allow a whooping R1.7 billion to be used as part of developing the infrastructure of the city over a period of three years. Gauteng has also planned a development strategy for the industrial sector named the Blue IQ.
There are now a lot of funds to improve Gauteng’s infrastructural requirements. The areas of Newtown, Braamfontein and Fordsburg are the most likely beneficiaries of the likely public-sector investment in the business district of Johannesburg.
Gauteng has devoted a sum of nearly R400m to the Newtown neighbourhood and something in the likelihood of R350m to the area of Braamfontein. The governing bodies of these areas are in the look out for attracting some funds through the collaboration of the private and public sector. The work is already in progress with the creation of 2000 construction jobs and contracts being allocated to 66 companies.
Soon there will be a body to assess the performance of the Johannesburg Development Agency and also the Blue IQ team in order to keep a check on the budget allocation of the various projects.
Like the US, Johannesburg also expects to tide over the huge attempt to the renewal process of the urban scenario. With the migration of a lot of people into the city center there has been a spurt in the growth of crime as well as shopping centers and malls likewise. But what was affected in the worst manner was the infrastructure of the city. Construction work everywhere in the city led to a lot of city traffic. It is a tough task to achieve a recovery of the central parts of Johannesburg.
Graeme Reid, CEO of the Johannesburg Development Agency, is leading the process of the renewal strategy of the inner-city. Even he has to lay acceptance on the fact that the Rosebank-Illovo-Sandton axis is, in reality, the CBD. It is sought to provide a new identity for the previous one.
The metro council of Johannesburg is trying to develop the area around New Town as a suburban place which will be abuzz with activity round the clock. They are inspired by the cities of New York and Chicago. They are also trying to influence the standard of people living in the area, who will not mind paying a little extra for improved apartments. People have started to move into the areas bordering Newtown and Fordsburg, near the Oriental Plaza.
The Johannesburg Housing Corp has permitted the construction of 600 buildings in the Market Theatre area. Almost 2200 housing flats have been authorized over the period of the upcoming three years. The salary range of the people residing there will be from R3500 to R12000.
Boeing is planning to move its corporate headquarters to this area. Along with that there is a cleanliness drive in the area of Newtown. Funds are being allocated to improve on the construction. Malls and parks are being built to attract tourists as well as increase the resident population in the area. A number of measures are being undertaken to bring about this development by the Johannesburg Development Agency as well as Blue IQ plan.
Author: IMAGINE Properties