Is buying a property in Rosebank a good investment?

Last updated on December 14, 2023

Yes, the analysis of Johannesburg's property market is included in our pack

If you've explored the cultural attractions and urban conveniences in Rosebank, you might have looked into real estate options, securing a property in this vibrant Johannesburg neighborhood.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for South Africa, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Rosebank?

Rosebank in Johannesburg has become an increasingly attractive location for property buyers, offering a blend of unique attributes that set it apart from other real estate markets.

Unlike many other areas, Rosebank strikes a fine balance between urban and suburban living. Its cosmopolitan atmosphere, combined with the presence of green spaces and tree-lined streets, provides a lifestyle that is both vibrant and serene.

What particularly stands out about Rosebank is its robust infrastructure and connectivity. The area is well-served by public transportation, including the Gautrain, Johannesburg's rapid transit railway system.

This connectivity makes it highly accessible and appealing for professionals who may work in the central business district or other parts of the city.

Moreover, Rosebank's proximity to major business hubs, like Sandton, adds to its allure for business professionals.

Rosebank started gaining popularity in the early 2000s. This surge in interest was fueled by significant developments in retail, commercial, and residential properties. The area saw the rise of modern apartment complexes, office buildings, and a thriving retail sector, including the revamped Rosebank Mall.These developments transformed Rosebank into a bustling and fashionable urban node.

Regarding its staying power as a popular location, several factors suggest that Rosebank will maintain its hype. The ongoing development projects and investments in infrastructure indicate a strong commitment to the area's growth.

Moreover, the mix of residential, commercial, and retail spaces keeps the local economy vibrant and resilient, making it an appealing long-term prospect for property buyers.

The type of people attracted to Rosebank is diverse. It's a melting pot of young professionals, expatriates, and families. The area's modern apartments and townhouses appeal to those seeking a contemporary urban lifestyle, while its cultural scene, with galleries and theatres, attracts arts and culture enthusiasts.

Additionally, the presence of reputable schools and family-friendly amenities makes it a viable option for families.

However, Rosebank does have its weaknesses. The cost of living and property prices in Rosebank are relatively high compared to other areas in Johannesburg. This might deter some buyers, especially those looking for more affordable housing options.

Additionally, as with any bustling urban area, traffic congestion can be a concern, particularly during peak hours. Lastly, while Rosebank is generally considered safe, like many urban centers, it requires residents to be mindful of security, an aspect that can be a concern for some.

In essence, Rosebank's unique blend of urban sophistication and suburban comfort, along with its strategic location and vibrant cultural scene, make it an attractive option for diverse property buyers.

While it does have some drawbacks, its strengths seem to outweigh these, contributing to its continued popularity in Johannesburg's real estate market.

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Why is Rosebank a nice place to live?

Rosebank offers a unique blend of urban sophistication and suburban tranquility, making it a desirable place to live.

The lifestyle in Rosebank is characterized by a cosmopolitan atmosphere. Here, you'll find a vibrant mix of arts, culture, and shopping, all set against a backdrop of tree-lined streets and green spaces.

This blend creates a dynamic yet relaxed environment, ideal for those who enjoy city living without the overwhelming hustle and bustle.

The culture in Rosebank is diverse and inclusive. It's home to a variety of art galleries, like the Goodman Gallery and Everard Read Gallery, which are renowned for showcasing both local and international art.

The area also hosts several cultural events throughout the year, adding to its lively atmosphere. For expatriates, Rosebank is particularly appealing. The expat community here is thriving, largely because of the area's modern amenities, safety, and English-speaking environment.

Expats often find it easy to integrate, thanks to the welcoming local community and the presence of international corporations and businesses in the area.

Living in Rosebank does come with a higher cost compared to other parts of Johannesburg. The housing market here is quite robust, with a range of high-end apartments and townhouses.

While this might mean higher rental and purchase prices, many find the cost justifiable given the quality of life and amenities offered.

Safety in Rosebank is generally considered better than in many other parts of Johannesburg. The area benefits from private security services and community initiatives, making it a safer choice for families and professionals.

However, like any urban area, it's wise to remain vigilant and security-conscious. Amenities and facilities in Rosebank are top-notch. For families, there are reputable schools such as Rosebank Primary School and Kingsmead College.

Healthcare needs are well catered for with facilities like Rosebank Clinic and Netcare Milpark Hospital nearby. Shopping is a pleasure at places like Rosebank Mall and The Zone @ Rosebank, offering a wide range of retail stores and eateries.

The quality of infrastructure in Rosebank is commendable. Roads are well-maintained, and utilities like electricity and water supply are reliable.

Internet connectivity is excellent, with many providers offering high-speed options, making it suitable for those working from home or requiring strong digital connectivity.

Accessibility is one of Rosebank's strong points. It's well connected to other parts of Johannesburg via major roads and highways. The presence of the Gautrain station in Rosebank makes travel to places like Sandton, Pretoria, and the OR Tambo International Airport quick and efficient.

Additionally, there are several public transportation options, including buses and metered taxis, making commuting within and outside Rosebank convenient.

How much does it cost to buy real estate in Rosebank?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in South Africa.

Buying a property in Rosebank varies in cost depending on the type of property you're interested in.

The area offers a diverse range of residential properties, including modern apartments, traditional houses, and for those looking for something extra, luxury villas. Each type caters to different lifestyles and preferences, which is part of what makes Rosebank so appealing.

In Rosebank, apartments are particularly in high demand. This trend is driven by the area's appeal to young professionals and expatriates who prefer the convenience and modern amenities that apartments offer.

These properties often come with additional facilities like security, parking, and sometimes even pools or gyms, which aligns well with the lifestyle sought by many residents in this area.

Rosebank's property market is a mix of new developments and resale properties. In recent years, there has been a noticeable trend towards the development of new, upscale apartment complexes. These developments are attractive due to their modern design, strategic location, and the lifestyle they offer.

When it comes to pricing, properties in Rosebank can vary widely. prices per square meter for apartments in Rosebank could range from around R20,000 to R40,000 or more, depending on the property's location, size, and level of luxury.

Houses and luxury villas, being larger and often coming with additional land, can command significantly higher prices.

The property values in Rosebank have seen a steady increase over the years. This trend is partly due to the area's ongoing development and its growing reputation as a desirable place to live.

The introduction of new apartment complexes and the constant improvement in amenities and infrastructure have played a significant role in this appreciation.

Looking to the future, there are indications that property values in Rosebank will continue to rise. Upcoming developments and city planning changes can significantly impact property values.

For instance, any new commercial development, improvements in public transport, or upgrades to local amenities will likely make the area even more attractive, thus driving up property values.

Predictions for the real estate market in Rosebank in the coming years remain positive. Factors like its strategic location, the continuous influx of investments, and its appeal to a diverse demographic are likely to sustain demand.

The presence of commercial hubs, coupled with the lifestyle and security that the area offers, are strong indicators of potential increases in property value.

Where is the best area to buy a property in Rosebank?

When considering where to buy a property in Rosebank it's important to understand that different parts of the area offer varied atmospheres, property types, and pricing.

Rosebank is a diverse neighborhood, and each area within it has its unique charm and characteristics.

Firstly, the central part of Rosebank, near the Rosebank Mall and the Gautrain station, is known for its vibrant urban atmosphere. This area is bustling with activity, offering a mix of commercial and residential properties.

You'll find a range of modern apartments and penthouses here, many of which come with premium amenities like security services, pools, and fitness centers. Due to its prime location and modern infrastructure, this area tends to be on the higher end of the price spectrum.

On the other hand, if you venture towards the outskirts of Rosebank, the atmosphere becomes more tranquil and suburban. Here, the property types transition more towards traditional houses and smaller apartment complexes.

The prices in these areas can be more moderate, providing options for those who prefer a quieter setting without straying too far from the conveniences of central Rosebank.

There are also up-and-coming areas within Rosebank where buyers might find good value. One such area is around Keyes Art Mile. This part of Rosebank is gaining popularity due to its cultural appeal, with art galleries, boutiques, and eateries creating a lively neighborhood vibe.

Properties in this area might be a smart investment, as the growing popularity could lead to an increase in property values over time.

For buyers looking for a balance between urban convenience and a relaxed atmosphere, the areas near the Rosebank Clinic or around Oxford Road are worth considering.

These areas offer easy access to central Rosebank's amenities while being slightly removed from the busiest parts of the neighborhood. Properties here vary from modern apartments to more traditional homes, catering to a range of preferences and budgets.

Conversely, areas immediately adjacent to the busiest parts of Rosebank, particularly those closer to high-traffic commercial zones, might not be as advisable for those seeking a quieter residential experience.

While these areas offer the convenience of being close to shopping and entertainment options, they can also come with the drawbacks of noise, traffic, and a more transient population.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for South Africa.

Area	Atmosphere	Property Types	Price Trend
Central Rosebank	Vibrant urban atmosphere	Modern apartments, penthouses	Higher end
Outskirts of Rosebank	Tranquil and suburban	Traditional houses, smaller apartment complexes	Moderate
Keyes Art Mile Area	Culturally lively, up-and-coming	Varied; from apartments to boutique homes	Potential growth in value
Near Rosebank Clinic/Oxford Road	Balance of convenience and calm	Mix of modern apartments and traditional homes	Varied
Adjacent to High-Traffic Commercial Zones	Convenient but noisy	Primarily apartments	Varies; potential for noise and traffic issues

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Is there a strong rental demand in Rosebank?

Rosebank is indeed experiencing a strong demand for rental properties, primarily due to its strategic location, modern amenities, and vibrant lifestyle.

The nature of this demand leans more towards long-term rentals, although there is a notable market for short-term rentals as well, especially given the area's appeal to tourists and business travelers.

The target demographic for rentals in Rosebank is quite diverse. It includes young professionals, corporate employees, expatriates, and students.

These groups are typically drawn to Rosebank for its convenience, lifestyle, and accessibility to major business districts and educational institutions.

Speaking of potential tenants, young professionals and corporate employees often look for modern apartments that offer convenience and a sense of community. They prefer properties that are close to their workplace, public transportation links like the Gautrain, and leisure amenities.

Expatriates, on the other hand, might prioritize security and proximity to international schools or businesses. Students, who also form a significant portion of the tenant base, generally seek affordable, smaller units or shared accommodations close to universities and colleges.

In terms of property types, modern one- or two-bedroom apartments are in high demand, especially those in secure complexes with amenities like parking, Wi-Fi, and a fitness center.

Areas within Rosebank that are particularly popular include those close to the Rosebank Mall, Keyes Art Mile, and the Gautrain station. These locations offer the ideal mix of convenience, accessibility, and lifestyle that appeals to the target tenant groups.

Amenities that can help reduce vacancy in rental properties include reliable security services, which are a top priority for most tenants in Johannesburg.

Additionally, properties with added facilities like swimming pools, gyms, and communal gardens are more attractive, as they offer tenants a higher quality of living. Fast and reliable internet connectivity is also a crucial amenity, especially for young professionals and students.

Regarding potential returns on investment, properties in Rosebank can offer attractive yields, primarily due to the strong and consistent rental demand.

Although specific numbers can vary, landlords in Rosebank can expect a healthy rental yield, often higher than the average in Johannesburg. This is because properties in Rosebank can command higher rental prices due to the desirability of the area.

In terms of properties that are seeing increasing demand and could potentially offer better yields, smaller, well-located apartments seem to be a growing trend. These properties cater to the significant number of single professionals and students in the area, offering affordability and convenience.

Furthermore, as remote working becomes more prevalent, properties with space for a home office or with co-working facilities might see an increase in demand.

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Is it easy to buy a property as foreigner in Rosebank?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in South Africa.

Buying property in Rosebank, Johannesburg as a foreigner is relatively straightforward, but it does come with specific considerations and procedures that are important to understand.

Firstly, there are no major regulations or restrictions specifically targeting foreign buyers in South Africa. Foreigners can own and register property in their names just like South African citizens.

However, one regulation to note is that if a foreign buyer's investment is funded through foreign funds, the South African Reserve Bank must approve the purchase. This is a standard procedure and usually not a major obstacle, but it is an additional step in the buying process.

The purchasing process in Rosebank generally follows the standard South African property buying procedure. Once you've chosen a property, you'll make an offer to purchase, which, if accepted, becomes a legally binding agreement.

You'll then need to pay a deposit, usually held in trust by the estate agent or an attorney. The process from signing the offer to purchase to transferring the property can take several months, during which various checks and procedures (like property inspection, securing a loan, and transferring the title deed) are completed.

When it comes to risks associated with property investment in Rosebank, they are similar to those in other urban areas. Market fluctuations can affect property values, and as with any city, economic and political factors can impact the real estate market.

Additionally, foreign investors should be aware of currency exchange risks, as fluctuations in the exchange rate can affect the value of their investment.

A common pitfall for foreigners buying property in South Africa is underestimating the importance of understanding local property laws and market dynamics.

For example, South Africa's property purchase process involves unique steps like obtaining a clearance certificate from the local municipality, proving that all rates and taxes on the property are up to date. Overlooking such details can lead to delays or complications in the buying process.

Working with a local real estate agent or lawyer is highly advisable, especially for foreign buyers. They can provide invaluable guidance through the intricacies of the South African property market, assist with legal and procedural requirements, and help navigate any potential hurdles.

Common exit strategies for property investors in Rosebank include selling the property for capital gain or renting it out for income. The rental market in Rosebank is quite strong, so renting out the property can be a viable strategy for long-term income.

Alternatively, investors might choose to hold onto their properties, betting on long-term appreciation in value, especially given Rosebank's desirability and ongoing development.