The City of Cape Town’s Council has approved the Incentive Overlay Zone (IOZ) for Development Focus Areas in Athlone, Maitland, Parow/Elsies River, Bellville and Diep River, with effect from 1^st of October 2025.

The Incentive Overlay Zone assigns additional and enhanced development rights to properties that fall within these zones such as height, floor factor, coverage, and setbacks. Should a new proposed development comply with the rules of the Incentive Overlay Zone, only a building application is required, says the municipality.

In all other areas in Cape Town where property developers want to increase the development opportunity of a site over and above what is being allowed for as part of its current zoning, they are required to follow a land use application process and submit a building plan application to the City for assessment.

The Incentive Overlay Zone for the five Development Focus Areas is now effective for:

• Parow/Elsies River – along the Voortrekker Road Corridor, and bounded by the railway line in the south, crossing Voortrekker Road to the north.
• Diep River – a district node intended for mixed-use intensification, located at the intersection of Kendal Road and Main Road.
• Maitland – an important node on Voortrekker Road, offering a diversity of land uses and it is highly accessible (and close to) the Cape Town and Bellville CBDs.
• Bellville CBD – the main CBD area, rail station, public transport interchange, and extends along Voortrekker Road and Durban Road to the north.
• Athlone CBD – located along Klipfontein Corridor, and includes Klipfontein Road, Aden Avenue, and the rail station.

In June 2025, the City of Cape Town’s Council approved several amendments to the Municipal Planning By-law that regulates development and land use with introduction of an Incentive Overlay Zone as one of the key initiatives.