Waterfall City, one of South Africa’s most ambitious and expansive property developments, is home to thousands of residents and a diverse range of real estate projects. However, few people are aware of the fascinating history underpinning this modern urban landscape. Beyond its contemporary infrastructure lies an extraordinary past, marked by pioneering land use concepts and a unique leasing model that has transformed the South African property market.

From Waterval Farm to Waterfall City

The land that now hosts Waterfall City was originally a farm established in 1850. It spanned a vast 3,400 hectares and was named Waterval by land surveyor Peter McDonald, after a small waterfall found on the property. In 1888, McDonald's land survey plan was approved by Johann FB Rissik, the surveyor general at the time, and the farm was officially registered. A year later, in 1889, the title deed was signed by Paul Kruger, the then-president of the South African Republic.

Johannesburg’s history is closely linked to gold mining, and by 1884, gold was discovered in various locations, including near the Jukskei River, which flowed through Waterval farm. This led to speculation that gold was abundant throughout the region. However, it wasn’t until 1886 that the primary gold reef was found at Randjeslaagte, which is today’s central Johannesburg.

The site of Waterval farm is now part of Midrand, strategically positioned between Pretoria and Johannesburg. This prime location has since given rise to the multibillion-rand Waterfall City development, a vibrant mixed-use urban hub.

The Early Owners and the Establishment of Halfway House

The first documented owner of Waterval farm was a woman named Miss Pimond, who later sold the land to the Gibson brothers. These British settlers, who arrived in South Africa around 1871, became the first official title-deed holders of the farm. Their primary business was operating the Red Star Line stagecoach service, transporting passengers and goods between major settlements.

To support their transport enterprise, the Gibson brothers raised cattle on the farm and used ox wagons for logistics. Recognizing the farm’s strategic location between Johannesburg and Pretoria, they established a stopping point for travelers and aptly named it Halfway House—a name still in use today.

The Mia Family and the Transformation of Waterval Farm

In 1934, the farm was purchased from the estate of John Alexander Gibson by Moosa Ismail Mia for £16,000. Born in India in 1876, Mia immigrated to the Transvaal in 1904. Due to land ownership restrictions imposed by the Union of South Africa, he registered the property under Witwatersrand Estates Limited, a company created to work within these legal constraints. Over time, the farm became widely known as Mia’s Farm.

Moosa Mia, along with his four sons—Mohamed, Ahmed, Mahmood, and Yusuf—developed a strong community presence on the land. They established the Waterval Islamic Institute in 1940, one of the earliest formal Muslim educational institutions in the Transvaal. The institute played a crucial role in Islamic scholarship, even running its own printing press, known as The Shed. Through their efforts, the Mias significantly contributed to the institutionalization of Islam in South Africa.

From Farmland to Urban Innovation

For much of its history under the Mia family, the land remained a working farm. The family cultivated crops such as maize and raised livestock, including cattle and sheep. However, by 1985, the immense value of its location was becoming clear, prompting discussions about developing the land into something greater.

A key figure in this transformation was Werner van Rhyn, a developer who envisioned a modern, mixed-use urban precinct. He approached the Mia family with a plan, and a partnership was formed. The Mias collaborated with real estate investment trust Attacq, and by 1996, planning began for what would ultimately become Waterfall City.

Since then, several property developers, including Balwin Properties, have contributed to the area’s growth, helping to shape the modern skyline of Waterfall City. Today, the development boasts a range of high-profile commercial, residential, and retail spaces.

A Thriving Urban Hub

Waterfall City has become an economic powerhouse, attracting significant investment. Its meticulously maintained roads and landscaped spaces have made it one of South Africa’s most desirable urban environments. The precinct is home to corporate headquarters such as PwC, high-end hotels, hospitals, and the Mall of Africa, one of the largest shopping centers in the country.

Education is another major focus of the area, with numerous prestigious schools setting up campuses. These include Curro Castle, Reddam House, Curro Waterfall Primary School, Curro Waterfall High School, Reddam House Preparatory School, Reddam House College, and the Stadio School of Education.

The Role of Islamic Law - The Waqf System

Despite its transformation, Waterfall City remains under the ownership of the Waterfall Islamic Institute (WIC), which was established by the Mia family. The WIC holds a 22% stake in Atterbury Investment Holdings, ensuring that the legacy of the land remains intact.

A key factor in the land’s governance is the Islamic principle of waqf, a form of religious endowment. Under this system, land designated as waqf cannot be sold or transferred, as it is considered an asset dedicated to Allah for the benefit of the needy. Instead of private ownership, the land is leased, with all lease profits directed toward charitable and community development initiatives.

The 99-Year Leasehold Model - A Game-Changer for Real Estate

All properties within Waterfall City operate under a leasehold model rather than freehold ownership. One of the most prominent projects, Balwin Properties’ Munyaka development, worth over R10 billion, follows this system.

The leasehold model operates on 99-year agreements, ensuring that while buyers do not own the land outright, they hold secure long-term lease rights. These agreements are:

• Registered at the deeds office and renewable indefinitely.
• Recognized by banks, allowing lessees to secure financing.
• Transferable, meaning that property owners can sell their leases at any time. The new buyer simply enters into a fresh 99-year lease.

This structure eliminates transfer duties, reducing transaction costs for buyers and making investment more attractive.

Financial Considerations and Revenue Streams

An interesting feature of the Munyaka development is the financial model associated with property sales and lease renewals. When selling an apartment, property owners must pay:

• A capped 5% agent commission.
• A 3% plus VAT fee to the Islamic Trust.

Lease renewals also incur a 3% plus VAT fee to the Islamic Trust and a 0.5% contribution to the residents’ association, calculated on the apartment’s market value. However, in cases of inheritance or divorce, these fees are waived, allowing beneficiaries to continue the lease without additional costs.

Implications for Future Urban Development

Waterfall City’s success demonstrates how leasing models can be an effective tool for urban expansion while maintaining long-term ownership. This approach has the potential to reshape property development across South Africa, particularly in homelands, traditional leadership areas, and state-owned enterprises.

For instance, government entities such as PRASA could adopt a similar model, leveraging land leases to generate sustainable revenue while preserving state assets. Likewise, sporting facilities and stadiums could implement lease structures to fund maintenance and upgrades without outright selling valuable land.

Islamic Compliance and Ethical Considerations

One of the unique aspects of this model is its adherence to Islamic law. Under waqf conditions, certain activities are strictly prohibited, including businesses related to alcohol, gambling, and pork products.

While restaurants operating on Waterfall City land may serve alcohol, the lease agreement structure ensures that the Islamic Trust does not directly profit from such businesses, thereby remaining compliant with religious principles. This setup allows the city to maintain its Islamic heritage while functioning as a modern commercial hub.

Final Thoughts

Waterfall City stands as a remarkable example of how historical land use principles can be adapted to modern urban development. By embracing Islamic endowment structures, innovative leasehold agreements, and long-term urban planning, it has become a model for sustainable property development.

As South Africa explores ways to unlock land potential without relinquishing ownership, Waterfall City’s waqf-based leasing model could offer a blueprint for the future of real estate.