Canary Wharf in London is known as being one of Europe’s largest financial services employment clusters but it is also a leading prime London residential market with a new wave of development set to get underway.
The new home building is accompanied by new infrastructure and amenities which will reinforce the area’s position as a prime residential address, according to a new report from international real estate Knight Frank.
Already home to one of the busiest and most vibrant shopping malls in the city, as well as more than 300 shops, cafés, supermarkets, bars and restaurants, it says that Canary Wharf is already an attractive residential environment as well as a business centre.
According Gráinne Gilmore, head of UK residential research at Knight Frank, the development planned for this area, which includes a new primary school, will augment its appeal to a wider demographic, attracting families as well as young professionals, and serve to further change perception away from ‘pied a terre’ to ‘home’. Meanwhile, the opening of Crossrail will enhance Canary Wharf’s connectivity.
Property prices in Canary Wharf have risen by 27% since early 2013, comfortably outstripping the 10% growth seen across prime central London over the same time, according to Knight Frank’s index.
Gilmore pointed out that such strong growth is partly underpinned by the improving UK economy, something which is also reflected in the commercial listing market in Canary Wharf, with vacancy rates falling and upward pressure on office rents.
The other effect at play on prices is the return of the ‘ripple effect’, with house price growth spreading outwards from central London, as it did in previous UK housing cycles.
‘However, despite this outperformance in price growth, average values are still significantly lower than those in more established prime residential neighbourhoods in West London,’ said Gilmore.
She pointed out that Canary Wharf and its surrounds are also emerging as a hub for culture and entertainment as London’s ‘cultural centre of gravity’ is enhanced by activity in the East.
There is a popular arts and events programme already hosted on the Canary Wharf Estate, with live music shows, outdoor dance performances, sporting events, open air theatre and exhibitions.
There are 14 schemes of around 400 units or more already under construction or with full planning on the Canary Wharf Estate and nearby on the Isle of Dogs. Some of these schemes are in the very early stages of development and will take some years to deliver.
Canary Wharf Group has already begun work on Canary Wharf Residential, a mixed-use scheme of over 3,000 new homes, including over 600 affordable units, a school and a medical centre. The scheme will expand the estate from 100 acres to 122 acres.
Berkeley Homes has permission to build a residential tower on Marsh Wall, which, once complete, will be the UK’s tallest residential building, surpassing the 181 meter St George Wharf Tower in Vauxhall. Meanwhile Eco World-Ballymore is constructing twin residential towers at Wardian, just across the dock from the Canary Wharf Estate.
‘The scope of expansion highlights the transformation taking place in the area, with a critical mass of development helping to serve the need for housing across the capital,’ added Gilmore.
Knight Frank’s current forecasts show a steady and sustainable rate of growth across the London market. Residential prices are expected to climb by a cumulative 26% between 2015 and 2019.
‘Within this wider trend across London, the maturing of Canary Wharf as a prime residential market is expected to continue, underpinned by the delivery of new amenities and infrastructure upgrades such as Crossrail. The planned residential developments, the amenities and place making which will accompany them, should also serve to mark a sea change in the area’s community,’ explained Gilmore.
Canary Wharf is currently primarily home to younger residents, with those under 40 making up a much larger proportion of buyers and renters than in other prime London neighbourhoods, according to Knight Frank data.
‘The creation of new homes pivoting around a new school, Crossrail and new office space for creative and technology firms will enhance its appeal to a wider demographic, and cement its position as a key prime London Location, ‘ said Gilmore.
‘This position is emphasised by the shifting of London’s economic and cultural centres of gravity further eastwards as well as the eastwards expansion of the boundaries of prime London, reflecting the increased popularity of East London living,’ she added.
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Source: Property News Spain