This data story explores the City’s building plans approval performance through the fourth quarter of the 2023/24 financial year. It examines the quarterly values and number of building plans, identifying trends of expansion and contraction. The analysis also compares Durban's performance in building plan values and numbers across different categories and regions. This evaluation is vital for understanding the domestic investment outlook and monitoring the city's economic activity.
The value of building plans approved in Q4 of the 2023/24 financial year is the highest compared to the previous quarters. The value increased significantly from R1,5 billion in Q3 to R1,7 billion in Q4, representing a robust growth rate of approximately 19.01%. Concurrently, the number of approved plans experienced a modest decline, decreasing from 976 in Q3 to 953 in Q4, are duction of about 2.36%. The eThekwini municipality approved building plans valued at R6.3 billion for the 2023/24 financial year, encompassing 6,371building projects. However, the total value of approved building plans decreased by 57.4% compared to the previous financial year while the number of approved building plans increased by 13.1%.
Figure1: eThekwini’s Building Plans Approved
Source: StatsSA, Selected building statistics of the private sector as reported by local government institutions at the current price, 2024
Throughout the financial year, the North region dominated in terms of the total value of building plans approved, accumulating R2,0 billion. It led in the first threequarters with values of R741,3 million, R437,2 million, and R458,4 million, respectively. However, in the last two quarters, there was a noticeable shift. In Q3, the North region had R458,4 million in approved building plans, but this declined to R367,7 million in Q4. Conversely, the South region saw an improvement, with values increasing from R161,4 million in Q3 to R498,2 million in Q4. The Central region experienced a decline, with approved building plans dropping from R406,0 million in Q3 to R207,6 million in Q4. The Inner West region, however, showed improvement, with values rising from R222,2 million inQ3 to R359,7 million in Q4. Lastly, the Outer West region also improved, with approved building plans increasing from R209,9 million in Q3 to R301,9 million in Q4.
Figure2: Value of building plans approved per region
Source: StatsSA, Selected building statistics of the private sector as reported by local government institutions at the current price, 2024
The South region was dominant in terms of the total number of building plans approved, primarily due to an exceptional performance in Q2, resulting in a total of 2,731 plans. However, between Q3 and Q4, various regions exhibited distinct trends. The North region experienced a decline of 22.1%, decreasing from 321 plans in Q3 to 250 plans in Q4. The South region showed an improvement, increasing by 43.6% from 55 plans in Q3 to 79 plans in Q4. The Central region saw a significant decline of 42.2%, dropping from 339 plans inQ3 to 196 plans in Q4. The Inner West region improved by 57.1%, rising from 140plans in Q3 to 220 plans in Q4. The Outer West region also showed a positive trend, with an increase of 71.9%, going from 121 plans in Q3 to 208 plans in Q4
Figure3: Number of building plans approved per region
Source: StatsSA, Selected building statistics of the private sector as reported by local government institutions at the current price, 2024
The dominant property type over all four quarters is additions and alterations that consistently held the highest value, with R930,817 in Q1,R731,257 in Q2, R723,110 in Q3, and R563,709 in Q4. For residential buildings, the value decreased from R607,615 in Q3 to R550,224 in Q4, representing are duction of approximately 9.44%. In contrast, non-residential buildings experienced a significant increase in value, from R127,207 in Q3 to R621,138 inQ4, marking a dramatic surge of about 388.33%. Meanwhile, the value for additions and alterations decreased from R723,110 in Q3 to R563,709 in Q4, a decline of around 22.05%.
The value of building plans approved in the fourth quarter of the 2023/24 fiscal year surged to R1.7billion, representing a 19.0% increase from the previous quarter. This growth aligns with the 16.7% rise observed in the FNB/BER building confidence index for the second quarter of 2024. Additionally, it corresponds with the significant increase in the Durban business confidence index, which climbed from 38.4% in Q1 2024 to 55.5% in Q2 2024. This analysis of building plans approved in Q4 23/24 strongly indicates that both domestic investment and the city's economic activity have shown a positive path lately.
Produced by The Durban EDGE Team of the
Policy, Strategy, Innovation, and Research Department of
The Economic Development Unit of eThekwini Municipality
For more information, contact edge@durban.gov.za
Ref: Siphesihle.Thusi@durban.gov.za
Economic Research Advisor
Economic Information and Research
REFERENCE LIST
1. StatsSA, Selected building statistics of the private sector as reported by local government institutions at the current price, 2024,https://www.statssa.gov.za/?page_id=1854&PPN=P5041.1&SCH=73497
2. EThekwini Municipality, Development Planning Applications and Approvals, 2024, https://www.durban.gov.za/pages/government/documents?d=DPEM/Forms%20Download/Development%20Applications%20and%20Approvals
3. Bureau for Economic Research and First National Bank Building confidence index, 2024https://www.ber.ac.za/Documents/Index/FNB-Building-Confidence-Index
4. UKZN& DCCI. Durban Business Confidence Index. Durban: Macro Economics ResearchUnit: https://mru.ukzn.ac.za/durban-business-confidence-index/
