London has replaced New York as the financial capital of the world, resulting in a boom in jobs and attracting more people to the city. This has in turn caused a stir in the property market, particularly in the Docklands, Canary Wharf and surrounding areas. Prices are growing in these areas because demand for corporate and residential properties is high. Investors are seeing this growth and reacting to it, searching for new development sites and opportunities.
Greenwich and Blackheath are proving particularly popular with residential developers. The locations are ideal for people commuting to the city because of the great transport links. There is also more outdoor space available to the south of the Thames, meaning more opportunities for new builds. Demand is particularly high for corporate-standard properties because this is where the jobs boost has been felt the most.
The popularity of the areas can be seen by the latest figures released by Chestertons estate agents. They claim that in the first half of this year Blackheath has seen prices rise by an incredible 14.4%. The growth in Greenwich was more modest at 2.6% but this is still a good number when you consider the value of properties. Prices in the Docklands were up 3.4% and values in Canary Wharf were up 7% in the first 9 months of 2015 compared to the same period in 2014.
The demand is expected to continue at its current rate as the financial power of London continues to grow. The developments in the creative and technological sectors will also have an impact, potentially pushing prices even further.
Between Blackheath and Canary Wharf there are all kinds of construction projects underway to increase the number of properties that are available. This will help to satisfy the demand but if the current trend continues it could lead to higher prices in both the buyer and rental markets. Investors will be monitoring the conditions and the locations carefully to see what opportunities present themselves. As specialists with portfolio, property and block management in Barking and Dagenham and throughout the rest of London, we can provide the help and support you need to make a successful investment.