Property values in proximity to Gautrain stations are set to surge if international experience is anything to go by says Broll Property Group director Dave Alcock.

‘Similar projects internationally have pushed values surrounding stations and transport nodes significantly, and local research confirms that we can expect the same in South Africa,’ says Alcock. ‘While the stations themselves will carry various forms of light retail, complementary developments in surrounding areas will ensure that demand for close proximity to the stations is met with a comprehensive offering of commercial, retail and residential property.’

The Jubilee Line – recently built in London linking the Docklands directly with the West End – saw huge benefits for not only the Canary Wharf precinct but rejuvenated the whole of the South Bank where the line runs.

The impact of Gautrain on the local economy is set to be far reaching, offering hope that the inconvenience of the recently commenced construction phase will be worth it all.

‘Even though 2010 is the first major deadline for the Gautrain – to facilitate the mobility of visitors for the World Cup tournament – construction is set to continue until 2012. In the short term, these may prove discouraging for many, but the benefits associated with the Gautrain and associated infrastructure are set to have a decidedly positive effect on the property market into the future.’

Rosebank in particular is set to appreciate. Its central location between Johannesburg and Sandton, along with its proximity to the M1, and the fact that it is already on a municipal bus route, give it the potential to be at the heart of the greatest growth. This area is already popular, with trend-setting retail, excellent commercial space and varied entertainment facilities already available. Vacancy levels are at an all-time low in spite of the significant traffic traumas created by the re-routing of traffic through and around the area.

‘Substantial refurbishment of commercial space is already under way, with properties in surrounding suburbs in high demand. Stately homes in areas surrounding Rosebank have increased in value in the last two years. And, as older residents sell and move out, developers are set to create the high density housing that is traditionally associated with transport nodes.’

This kind of development is already noticeable in Sandton, where residential accommodation that varies from entry level apartments to the multi-million-Rand-per-unit Emperor apartment block are rising each day.

The Gautrain is set to relieve congestion in the Sandton area, a further driver in increasing values and occupancy rates within the already highly-developed node.

Areas surrounding Rhodesfield station near OR Tambo International Airport have also already felt the impact of the network, with residential properties around the station being sold to commercial developers. With property values increasing significantly there in the last two years, those in the know predict this trend will continue before construction is complete.

‘It is not only in the immediate vicinity of the stations that property values will appreciate however. Each station is set to be served by a Gautrain-run bus service – using a transfer ticket system it will be a mere extension of the rail journey – and the location of stops along each route will again become valuable points. The economic influence of Gautrain will likely be even further than might initially be anticipated,’ concludes Alcock.