With development continuing apace in the London districts surrounding the Olympic venues for 2012, there is much speculation over how the real estate market in the capital will be affected by the sporting event in years to come. According to a recent survey of businesses in the capital carried out by the Confederation of British Industry/KPMG, 43 per cent of respondents do not believe enough is being done to ensure a long-term legacy from the event.
London chairman of KPMG Richard Reid commented: "The Games will be great for business and will help promote London, but more needs to be done to ensure a long-lasting skills legacy for the capital is secured." Managing director of Discountletting Daniel Burgess echoed this sentiment, stressing the need for plans to be put in place for the continuation of regeneration projects once the event is over. "A decent plan on what the Olympic sites are going to be used for and how they can benefit the local communities is what is needed," he asserted.
However, one estate agent in the city is optimistic that the effects on some districts will be felt for many years to come. Speaking to FindaProperty last month, Richard Pine Coffin, of Hampton's International, explained east London in particular will benefit from the investment in new residential projects. "The 2012 Olympic legacy offers tremendous opportunities for east London with the creation of new transport links," he stated. Director of Housenetwork Graham Lock recently commented that high-profile tenants - such as Harvey Nichols - taking space at the Westfield shopping centre "bodes well" for the future strength of the real estate market in this part of the capital.
In its forward predictions to 2015, Savills suggested London house prices will follow a growth pattern over the coming years. According to the organisation, the value of prime central properties in the city is expected to be 34.4 per cent higher in 2015 than it was in 2010. Strong gains in 2011 and 2012 will then be followed with more moderate increases, the firm noted, anticipating price rises of approximately five per cent each year in 2014 and 2015.
- Thursday 08 December 2011