Smart City Where You Don’t Own Your Property: Waterfall City’s 99-Year Leasehold Model

Waterfall City in Midrand is one of South Africa’s premier smart cities, serving as an economic hub in Gauteng while operating under a leasehold rather than ownership model.

The 2,200-hectare precinct, which falls under the City of Johannesburg, is built on land that cannot be bought or sold because it is a waqf an Islamic charitable endowment.

This means every resident and business operates under a 99-year leasehold agreement rather than freehold or sectional title ownership.

The Land’s History

The land is owned by the Waterfall Islamic Institute (WIC) . It was founded by the Mia family, who bought the original farm in 1934 for £16,000 from an insolvent estate.

Adjusting for inflation, that would be roughly £1,003,155 in 2026, or R22.5 million.

Under waqf principles, the land is dedicated to Allah and the community. All profits must be used to fund charities, including education and various social projects.

The Leasehold Advantage

For property investors, this structure offers distinct advantages.

Because land is never “transferred” in the typical sense, buyers are currently exempt from transfer duties.

“Transfer fees can be exorbitant, so I would say that this is appealing for an investor,” prominent property expert Ash Müller , of Ask Ash, has stated.

Müller also explained that lease agreements are registered at the Pretoria Deeds Officenot the norm for leases.

“They are renewable after the 99-year period with an infinite number of extensions. The lease cannot be cancelled.”

“You can sell your property at any time during the 99-year lease, and the new owner will receive a brand new 99-year lease.”

The Fees

When lessors sell their apartments, certain fees apply:

• Agent’s commission, capped at 5%

• 3% plus VAT of the total sales price to the Islamic Institute

If the 99-year period expires, the lease can be renewed by paying:

• 3% plus VAT to the trust

• 0.5% to the residents’ association (based on current market value)

In the event of death or divorce, the trust does not require the parties or inheritors to pay the fee to continue the lease.

“Banks treat these lease agreements as bondable assets, and that is great,” Müller said. She believes banks funding these projects with leases in place and title deeds issued could be game-changing.

“It could change the game when it comes to unlocking the potential of homelands and areas under traditional ownership in South Africa.”

The Scale

Today, the city hosts corporate headquarters like PwC and the Mall of Africa. It also features numerous schools, including Curro and Reddam House campuses.

Real estate investment trust Attacq holds notarial leasehold rights in Waterfall City through a 70% subsidiary. Its investment property valuation in the precinct grew by 3.8% to reach R14.8 billion.

• Distributable Income: R216 million (17.5% increase)

• Mall of Africa occupancy: 98.6%

• Commercial portfolio occupancy: 86.2%

• Client retention rate: 85.8%

The Tech Footprint

Beyond offices, the precinct is expanding its technology footprint through a joint venture between Attacq and Vantage Data Centres.

The newly completed JNB 12.1 facility is an 11,151m² data centre, 100% occupied, with a property valuation of R616.7 million, underpinned by a 20-year lease.

It features four data halls, with electrical load ramping up to 16MW, supported by six backup power generators.

The Bottom Line

You don’t own the land. You lease it for 99 years. The lease can be renewed infinitely. Banks treat it as bondable.

Waterfall City is proof that leasehold can workand work well. For investors, the model offers lower upfront costs and long-term stability.

For South Africa, it may offer a blueprint for unlocking land under traditional ownership.

{Source: Mybroadband}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com