September 21, 2025
In Cape Town’s property market, buyers and investors often hear the term bulk but few understand what it really means. Bulk plays a decisive role in determining land value and ultimately the price that developers are willing to pay. For anyone considering land or property investments on the Atlantic Seaboard, understanding bulk is essential.
At Berman Brothers Group, we focus on educating buyers and investors so they can make informed decisions with confidence.
Bulk refers to the sellable area permitted on a piece of land. This sellable area is determined by the zoning scheme, which is set out in the conditions of the title deed.
When you purchase land, the zoning will outline the bulk factor, and that factor ultimately gives you the residual land value.
Developers use bulk to calculate how much they are willing to pay for land. The formula involves assessing the price per bulk square meter. This figure then guides what is considered an appropriate purchase price. For example, two similar-sized plots in Sea Point can have vastly different values depending on the zoning allowances and the resulting bulk factor. City of Cape Town’s Municipal Planning By-Law provides the framework for zoning, making it a key resource for developers and investors.
“Bulk is your sellable area. It is defined by the zoning scheme, and that bulk factor ultimately determines the residual land value and the price you pay.” - Paul Berman
For investors, understanding bulk is crucial because it influences:
1. The maximum size of the development permitted on a plot
2. The total sellable floor area and potential return on investment
3. The overall pricing strategy developers apply
By calculating price per bulk square meter, investors can evaluate whether land is priced fairly and whether it holds long-term value.
Our deep knowledge of zoning and bulk factors ensures that every project is optimised for both design and value. This approach allows us to consistently deliver landmark developments on the Atlantic Seaboard that balance architectural excellence with market sustainability.
Bulk is more than a technical term. It is the foundation of land valuation and development strategy. For buyers and investors in Cape Town, understanding bulk provides clarity on pricing, potential, and long-term opportunity.
