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London, 7th March 2012 - Crossrail will have a dramatic effect on residential property prices along its route, according to new research released by Jones Lang LaSalle – with particularly strong impacts around Tottenham Court Road, the City Fringe and Docklands.
The cross-London railway, which is due to begin operating from 2018, will make areas East of the City far more accessible, with the West End and Heathrow becoming just 13 minutes and 39 minutes from Canary Wharf respectively. However, its most important impact will be the improvement of the image and environment of the area around Tottenham Court Road, ending the scheme’s long blight of the area and bringing values in line with adjacent parts of the West End.
The property consultancy forecasts that over the six years to 2018, residential property prices will increase by 50% for mainstream property around Tottenham Court Road, with prime residential property seeing even greater growth of 57%. This will be closely followed by Canary Wharf and Farringdon, where mainstream and prime values will see uplifts of 46% and 47%, and 47% and 48% respectively.
Jon Neale, Residential Research Director at Jones Lang LaSalle, said: “Our core forecasts over the same period are circa 33% for mainstream and outer London and 40% for Inner London, so we expect outperformance all along the Crossrail route, particularly within a 5-minute walk of the new stations.”
“International evidence suggests that new transport infrastructure has strong impacts on values around new stations, with uplifts of 10%-20% commonplace. The effect is most intense on areas where the increase in accessibility is most significant (see attached map).”
Areas which are already very established locations, such as Bond Street, will benefit less from the uplift resulting from Crossrail, although the area will still see the strong price growth that will be characteristic of Inner London over the next few years – a result of the increasing appetite international investors have for such locations, together with robust domestic demand.
Neale added: “We expect the strongest effect to be on relatively central locations which currently suffer from relatively poor transport connections. Tottenham Court Road, in particular, will suddenly become within easy reach of the City, Canary Wharf and Heathrow. It will also benefit from the ending of the ‘Crossrail blight’ (and the extent of current construction works) which have kept that area from realising its potential for so long.
“We expect similar effects in locations such as Liverpool Street and Paddington. Further afield the greatest benefits will be at Canary Wharf which will become far more accessible from both the West End and Heathrow. The key thing to consider is the extent to which Crossrail improves the accessibility of a location from its current state.”
More suburban locations in West London, such as Ealing, will also see the benefits resulting from increased accessibility to the major employment centres of the City, West End and Canary Wharf. It is also likely that towns in the Home Counties will see fast links to Central London, notably Maidenhead, and will also benefit disproportionately.
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