Kempton Park is transforming into an Airport City
Category Property News
Kempton Park is poised for phenomenal growth and development in the upcoming years as public and private sectors collaborate to transform the real estate landscape of this city. Situated in the City of Ekurhuleni in the East Rand region of Johannesburg, Gauteng, Kempton Park is now a hive of activity owing to urban renewal plans.
The city is home to the OR Tambo International Airport, which is a key driver for growth. The airport currently holds the status as Africa's biggest and busiest airport, and this will be further capitalised on owing to the 30-year urban development plan known as the Ekurhuleni Aerotropolis programme.
Implemented in 2016, the programme is the municipality's response to transforming Kempton Park into an Airport City (Aerotropolis) by creating a metropolitan subregion where economic activity is centred around the airport. It is a long-term plan that will target major sectors for renewal including manufacturing, aviation and transport sectors.
Big investments have already been ignited through the programme. These include a R300 million PRASA Nerve Centre, a head office and training academy for Air Traffic and Navigation Services, and a R320 million upgrade and extension of Emperor's Palace Casino and Resort. The Kempton Park suburb of Pomona, which lies just 11 minutes from the airport catchment area, is also expected to receive 118 new mixed-use development projects that centre around industrial, commercial and residential properties.
However, it is important to note that Kempton Park will work alongside the neighbouring cities of Germiston and Boksburg to achieve development and urban renewal goals. Together, the three cities are known as the economic triangle as collectively, they bring in 95% of Ekurhuleni's revenue, most of which are concentrated around industrial activity.
One of the main areas that will benefit from urban renewal plans is the Kempton CBD as it lies in the same region as the airport. The Government and the private sector will work either collectively or independently to stimulate commercial, industrial, residential and retail investments in the area, while also creating employment opportunities and implementing upgrades to older buildings.
Already, R790mil has been pumped into upgrades and new developments in and around the CBD, with the most notable being the 1 900ha Riverfields Development mixed-use precinct. For over 20 years, the precinct has been pivotal for the commercial and industrial sectors due to its property offerings and strategic positioning northeast of the Kempton Park CBD and the Albertina Sisulu Freeway (R21). While new developments in the area include the Gleneagle Office Park, and Plumbago Business and Logistics Park. Developments planned for the near future will include a regional shopping centre, a residential estate and a community centre.
A big take away from the Ekurhuleni Aerotropolis programme is the impetus on transforming Kempton Park into a formidable node for commercial and industrial activity that will compete with the likes of Sandton. The phenomenal strides that have already taken place have undoubtedly boosted the residential market as more people are moving into the town for employment purposes, and developers are adding new residential stock to ease the high demand being experienced.
The city is a popular destination for rentals in apartments, complexes and duplexes, with the highest demand coming from young professionals who are relocating here for affordable rental rates and to be in close proximity to the CBD. Areas such as Terenure, Edleen, Glen Marais and Pomona are most preferred among this market as it offers some of the most affordable rentals in Kempton Park and is situated close to the Gautrain station in Rhodesfield.
The future of the residential market will be greatly influenced by the Aerotropolis programme, which has the construction of mixed-use developments high on its agenda. These developments combine various property types under one precinct such as shops, offices, light industries, residential properties, medical and educational facilities, restaurants, recreational venues, gyms and places of worship. This means that many new homes will be conveniently placed among a wealth of amenities right on their doorstep.
Although the Aerotropolis programme will take approximately three decades to complete, we can already see improvements taking place. Continued success will significantly depend on robust public and private sector partnerships, which in the end will forever transform the real estate landscape in Kempton Park.
Author: CSi Property Group