Property values in the Drakenstein Valley have soared over the past decade, with Paarl and Wellington emerging as some of the fastest-growing property markets in the Western Cape.

According to Drakenstein Municipality residential property values in the Paarl and Wellington area have increased by between 50% and 60% over the past five years alone, as reflected in the municipal valuation roll that came into effect on 1 July 2025.

It attributes the sharp increase to rapid development and continued investment in the area.

Bradley Brown, Drakenstein Municipality’s Chief Financial Officer, said Paarl and Wellington are experiencing “an unprecedented boom in development and investment.

“As one of the Western Cape’s fastest-growing municipal areas the area continues to attract new residents and businesses thanks to its strategic location and close vicinity to key transport nodes, reliable infrastructure and exceptional quality of life.”

He added that these factors directly contributed to the significant rise in residential property values across the valley.

The increase in property values has, however, also raised concerns among residents over higher municipal property rates.

In an effort to shield residents from steep increases during the 2025-’26 financial year Drakenstein Municipality successfully engaged the National Department of Cooperative Governance and Traditional Affairs to cap residential property rate increases at 12,5%.

“That was a first for a municipality in South Africa,” Brown said.

For the upcoming 2026-’27 financial year the municipality is proposing that property rate increases be capped at 3,7%. It is also proposing that residential property owners with properties valued at R350 000 or less pay no property rates.

Additional relief measures proposed by the municipality include rebates for indigent households, pensioners and residents who cannot connect to municipal water, sewerage or electricity infrastructure.

According to Brown all qualifying indigent consumers could receive a rebate of up to R1 million on the value of their properties.

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“All pensioners over the age of 60 will receive an automatic 5% reduction on property rates payable,” he said.

Brown further said pensioners over 60 with a proven monthly income of R35 000 or less may qualify for an additional 10% reduction upon application and approval.

The municipality is also proposing rebates of 7,5% each for residential property owners who cannot connect to municipal water, sewerage or electricity services, while physically disabled property owners may qualify for an additional 7,5% rebate.

Council is expected to make a final decision on the proposals when the Draft 2026-’27 Budget is tabled on Wednesday (27 May).

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