Cape Town Breaks Ground on Landmark Ubuntu Terrace Township Housing Project

Ubuntu Terrace 1 breaks ground in Delft, marking the first project approved under Cape Town’s revised 2025 affordable housing by-laws.

By: AXL Media

Published: Apr 10, 2026, 7:11 PM EDT

Source: Information for this report was sourced from BusinessTech

Township Housing Revolution Reaches Construction Phase

On March 28, 2026, the Ubuntu Terrace 1 project officially broke ground in Cape Town, marking a significant shift in how the city approaches the densification of township areas. Led by Sithembele Sidzumo and his team at Kaya Properties, the development is the first to receive funding through uMaStandi, a subsidiary of the specialist property financier TUHF, under a new affordable rental flat category. The project is designed to address the severe shortage of dignified, low-cost housing in South Africa’s most popular city while providing local property owners with a legal path to monetize their land.

Legislative Reforms Unlock Micro-Development Potential

The launch of Ubuntu Terrace was made possible by a major amendment to the City of Cape Town’s Municipal Planning By-law, which came into effect on September 1, 2025. This legislative shift reclassified "Single Residential Zoning" to allow for additional use rights, including the construction of up to 12 affordable rental units on a single property without the exhaustive rezoning requirements previously required. Nomfundo Molemohi, a consultant for uMaStandi, noted that these reforms were the result of years of advocacy aimed at recognizing the "quiet rental revolution" driven by local township landlords.

Local Planning Support Office Streamlines Approvals

A key component in the approval of Ubuntu Terrace 1 was the newly established Local Planning Support (LPS) office. Formed to bridge the gap between complex municipal regulations and micro-developers, the LPS provides free professional guidance from architects and quantity surveyors to ensure developments are safe, compliant, and sustainable. This collaborative approach between the city’s Spatial Planning and Environment Directorate and private entrepreneurs allowed Kaya Properties to navigate technical requirements that have historically acted as a barrier to entry for small-scale developers in areas like Delft and Langa.