![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/01\/Geordin-Hill-Lewis.png\")
<\/a>The City of Cape Town\u2019s proposed 2025\/26 budget has sparked some backlash, particularly regarding property rate increases for higher-valued homes.<\/p>\n\n\n\n
Under the proposal, property rates for all residential, commercial, and industrial properties would rise by 7.96%, but owners of more expensive homes could face hikes of over 20%.<\/p>\n\n\n\n
Speaking to CapeTalk, Cape Town Mayor Geordin Hill-Lewis defended the budget, citing large infrastructure investment, expanded policing, enhanced cleaning services, electricity price relief, and support for indigent and pensioner residents.<\/p>\n\n\n\n
\u201cThere are larger than usual proposed increases for more valuable properties,\u201d he said, calling it a necessary step to balance the books for these plans.<\/p>\n\n\n\n
Hill-Lewis acknowledged the backlash, saying the issue had been a \u201cmajor point of contact and communication\u201d with residents, particularly those owning homes valued at R4 million and above. <\/p>\n\n\n\n
Around 40,000 households fall in the R4 million to R7 million range, out of over 1 million rateable properties. <\/p>\n\n\n\n
For homes above R7 million, increases could exceed 20%, while he said that the \u201chuge majority\u201d of households would see \u201cvery reasonable single-digit increases.\u201d<\/p>\n\n\n\n
Some properties in the R1 million to R1.5 million range might even see decreases, he said, while properties valued between R2.5 million and R4 million are expected to face \u201clow double-digit\u201d increases.<\/p>\n\n\n\n
However, residents affected by higher hikes are voicing frustration. One homeowner facing a potential 25% increase on a R4 million property said: <\/p>\n\n\n\n
\u201cI don\u2019t care that I\u2019m paying lower rates in terms of the services I get than people in Johannesburg; I care about my monthly bill \u2013 and it\u2019s going to go up by 25%.\u201d<\/p>\n\n\n\n
Hill-Lewis countered that comparison with other cities, arguing that Cape Town remained a \u201cfunctional working city at the lowest cost in the country\u201d while other municipalities saw services collapse.<\/p>\n\n\n\n
Yet many residents feel the increases are unaffordable, especially without corresponding service improvements.<\/p>\n\n\n\n
Some residents had bought their homes long ago and may be living without significant income to absorb large hikes.<\/p>\n\n\n\n
They noted that while their property\u2019s value had risen, their income had not, leaving them unable to cover a potential well over 20% hike.<\/p>\n\n\n\n
A resident said: \u201cIt doesn\u2019t matter how good the services are\u2026 there is no way I am able to afford this kind of increase. I can\u2019t, I just can\u2019t.\u201d <\/p>\n\n\n\n