The new Crossrail routes in London will have a "dramatic effect" on the value of residential property in the areas close to the new transport links. This is the opinion of Jones Lang LaSalle, which has estimated price growth of around 50 per cent or more for homes near Tottenham Court Road, Canary Wharf and Farringdon over the next six years. By 2018, the firm expects prime properties in the Tottenham Court Road area to have climbed in value by 57 per cent. Meanwhile, rises of 47 per cent and 48 per cent for the most sought-after homes around Canary Wharf and Farringdon are anticipated respectively.
Residential research director at the organisation Jon Neale commented: "International evidence suggests that new transport infrastructure has strong impacts on values around new stations, with uplifts of ten to 20 per cent commonplace. The effect is most intense on areas where the increase in accessibility is most significant." This means destinations such as Bond Street, which already benefits from well-established transport hubs, won't experience such substantial rises, although healthy price growth is expected due to the popularity of real estate investment opportunities in central London.
Investors seeking assets with strong capital appreciation prospects need to look at the districts affected by Crossrail and assess how much the new rail link will improve accessibility compared to its current state, Mr Neale advised. In its London Hotspots report published late last year, Knight Frank also predicted strong returns on property investments in Farringdon. According to the firm's research, real estate values in this area will rise by 52 per cent by 2016, while the Marylebone/Fitzrovia district is expected to see price hikes of 66 per cent in the same timeframe, as properties here will be within walking distance of both the Bond Street and Tottenham Court Road stations.
- Monday 12 March 2012