Since the 1990s, high profile investors have relocated to the district, further contributing to its magnetism as a preferred business destination.

"IT and media companies, banks, law firms, corporate headquarters and international businesses located in Sandton Central have been realising significant returns on their upmarket property investments. Investors choosing to rent out their properties are also enjoying excellent returns as property values and rental yields increase," says Paul van Rooyen, city improvement district manager for the Sandton Central Management District (SCMD).

However, savvy property investors understand that maintaining upmarket properties requires access to significant cash flow resources. Given the characteristics of higher quality office properties, where property investors pay a premium for better quality assets with good value tenants, income return in Sandton Central is lower than the rest of Gauteng. Office properties in the district require more capital to drive increases in value.

Sandton Central office space gross rentals, including operating costs, rates and taxes perform exceptionally well. Grade A premises are charged between R120/m2 and R171/m2 while Grade B premises charge between R80/m2 to R100/m2. Basement parking rentals range between R500 to R685 per month.

"There is no doubt that Sandton Central is a prime location for business and despite the high cost in rent, business owners and tenants are not willing to move due to the lucrative nature of the district. A consistent increase in traffic and high scores of foreigners making Sandton Central their home, directly contributes to the success of businesses operating in the area," continues van Rooyen.

New developments set to reinforce property investor value

The completion of the Sandton Towers office development saw the unveiling of two sculpted towers linked by a vertical atrium. Double-glazed black, white and grey glass panels protect against external heat, cold and noise. Office space was snapped up very quickly with Deneys Reitz taking up two-thirds of the building.

Liberty Group and Pareto, the owners of the Sandton City complex, have set aside R1.77 billion to expand and refurbish the centre, resulting in an additional 30 000 square meter retail space. A new iconic building will also add to Sandton Central's skyline as an 85 storey office tower on the corner of Fifth Street and Rivonia Road is planned as the second phase of the development.

The majority of new developments in close proximity to the Gautrain stations are office buildings, allowing staff and clients easy access to public transport and reducing the level of dependence on vehicles. The majority of new developments in the area are A to AAA grade office space and will undoubtedly be in great demand in this fast growing economic centre.

"Many of the proposed developments are expected to be ready by mid 2011 to 2012. The timing could not be more perfect as many economists expect the commercial property market to strengthen and demand to increase during this time," says van Rooyen.

A dramatic reduction in crime levels contributes to investor confidence

Criminal activity is one of the most significant investor deterrents in South Africa. Increased pedestrian and vehicle traffic due to the district's popularity has motivated the SCMD to place a consistent emphasis on the safety and security of the district.

Public Safety Ambassadors (PSAs) patrol public spaces and are supported by seven armed-response vehicles with 23 armed reaction officers. Night shift teams visibly patrol the streets to deter any criminals and ensure the safety of visitors and residents.

All PSAs have direct contact with the main control room which operates 24/7 and have been highly effective when dispatching rapid response teams to diffuse potentially dangerous scenarios. Various crimes have been quelled since inception and the district hasn't fallen victim to any major crimes in years.

Sandton Central remains one of Africa's most lucrative and successful districts and it is clear that both local and international investors have responded positively to the SCMDs safety initiatives.