In the years after 1962 there was an influx of new residents in the area, and the significance and understanding of the Gandhian legacy became blurred and as a result in 1985 the Phoenix Settlement was burnt down and the few Indian families living on the Settlement and some refugees taking shelter there, were forced to flee. The Settlement was re built in 2000 and opened by the then President Thabo Mbeki. Today it remains a place of pilgrimage a sanctuary of peace and tranquillity amidst the crowded settlement of homeless people.

In 2000 these buildings were restored. Part of the property was given up to the City Council to house the many people who sought refuge on this land. The Phoenix Settlement remains a place of great spiritual value and thousands visit this place to be inspired and to learn about the life of Mahatma Gandhi.