Heriot REIT Launches Construction of New Student Accommodation Development in Cape Town

Cape Town continues to face a serious student housing shortage. The Heriot REIT student accommodation development is a strong response to this growing demand. Published sector data shows that the central city provides about 13,670 beds. This serves a combined student population of nearly 75,000. The shortfall is therefore significant. Against this backdrop, Heriot REIT Limited marked an important milestone. A sod-turning ceremony signalled the start of construction on its new student accommodation development, The Fibonacci, in Mowbray, Cape Town. The experienced Heriot REIT development team is leading the project. The team includes Steven Herring, Grant Elliott, and Daryl Sher.

The development responds directly to the city’s rising demand for quality and accessible student housing. This is especially true for students attending the University of Cape Town (UCT) and nearby institutions.

Prime Location of the Heriot REIT Student Accommodation Development

The development is located just 1.5 km from UCT. It is also close to Damelin and CPUT. This ensures strong connectivity for students. The Fibonacci is positioned along the popular Jammie Shuttle UCT bus route. It is also within walking distance of the local Metrorail station. This makes it convenient and accessible for students travelling around the city.

Once complete, the nine-storey development will offer 574 modern student residential units. It will also include an integrated lifestyle offering. Features include ground-floor retail, co-working spaces, parking, a gym, a rooftop terrace, and padel courts. A Shoprite Checkers store will anchor the retail component. This provides a convenient on-site amenity for residents. It also strengthens the development’s role within the Mowbray neighbourhood. A limited number of apartments were released for sale. Prices launched from R1.195 million.

Investment Appeal and UDZ Incentive

The Fibonacci is located within an Urban Development Zone (UDZ). This allows qualifying investors to access the Section 13(6) tax incentive. The incentive has further strengthened the project’s commercial appeal. Also, sales and investor engagement have been handled by Flyt Property Investments and Revo Property Group. Darryn van der Poel of Flyt Property Investments commented on the strong response. Flyt acts as joint marketing agent alongside Revo Property Group.

“Demand has exceeded expectations. Of the allocation released to market, we are already 100% sold out. The investment case speaks for itself. Rental demand and rental growth remain consistently strong.”

The remaining 400 units will stay within the Heriot investment portfolio. These units will be retained as rental stock.

City Support and Economic Impact

At the site inauguration, the City of Cape Town’s Mayoral Committee Member for Economic Growth, Alderman James Vos, spoke about the value of private-sector collaboration.

“Cape Town is buzzing with investor confidence. It is wonderful to see private-sector partners driving developments like The Fibonacci. These projects show real momentum in our city. As the City of Cape Town, we are supporting this investment wave through our Ease of Doing Business programme and dedicated support services. When developments like this take root, they create jobs, boost local businesses, and help our economy grow.”

Grant Elliott, who leads the project for Heriot REIT, highlighted the long-term vision and local impact.

“Reaching this milestone reflects a decade of planning, commitment, and collaboration. It is meaningful to see the impact this project will have. Also, it will support the Cape Town and Western Cape economies. It will also contribute positively to the surrounding community and neighbourhood.”

Elliott said The Fibonacci reflects Heriot REIT’s commitment to quality residential development and urban upliftment.

“Our focus is on creating well-located and well-integrated developments that add lasting value. The Fibonacci will not only house students. It will support local commerce, revitalise an important node, and help address a critical accommodation shortfall in the region.”

Professional Student Management

Proper Living will manage the student rental operations and resident experience. The company specialises in student accommodation and community-focused property management in Cape Town. Moreover, An on-site property manager will be appointed. This manager will oversee maintenance, access, and security. They will also support student services within the building. Local ward councillor Yusuf Mohamed attended the groundbreaking ceremony. He noted that the neighbourhood has long awaited a development of this scale.

“The community has been waiting for this progress and the upliftment it will bring. The Fibonacci represents positive momentum for Mowbray and the broader area.”

Construction is scheduled to begin in January 2026. Completion is targeted for late 2027. The Heriot REIT student accommodation development marks an important step forward. It will help address Cape Town’s student housing shortage. It will also contribute to economic growth and neighbourhood revitalisation.