In the first of a three-part series, we investigate the exciting investment opportunities offered by London’s wealth of new-build developments and renovation projects.
You only have to take a leisurely walk around the capital by day or night to appreciate the vast amount of new projects that are taking shape in prime locations. Take a look behind existing façades and you’ll also discover impressive renovations that are transforming buildings from their former uses, ranging from offices and army barracks to breweries and radio headquarters, into high-end residences.
Sara Ransom of Stacks Property Search, says, “Kings Cross, with its international links via St Pancras, has transformed beyond recognition through massive redevelopment including the now iconic Gasholders development and new shopping area. A new residential release is imminent, so off-plan buying in this area could be a shrewd move.”
Ms Ransom has noticed that developers are introducing an increasing amount of interesting communal elements into their spaces. “It makes sense to pay a bit more for an apartment in a development that has extras that are valuable to you,” she advises. “Some have communal work spaces that, for the self-employed or occasional working-from-home, can be a godsend. Take your laptop, grab a desk, and ‘go to work’, keeping your apartment free of office vibes.”
Chris Osmond, director at Johns & Co, says, “While the super prime new build market – £2,000 per square foot and above – has suffered over the past year, high end new-build in the Zone 1 fringes and into Zone 2 has been more resilient. The particular sweet spot is anywhere between the £850 – £1,100 per square foot point.”
Buyers tend to be a 50:50 mix of end user versus international buyers. “End users are London based,” he continues, “some will have rented in the building and have saved or had help from the bank of mum and dad to upgrade to a purchase. For international investors, taking rental yield, capital appreciation and currency which is still strong against a weakened pound, high-end new-build is still an attractive investment.”
Mr Osmond reports that the most popular locations for high-end new-build tend to be SW8/SW11 (Battersea Power Station/Nine Elms). “Whilst these postcodes have had their fair share of bad press,” he says, “the riverside location, the facilities, the views of London landmarks are second to none and, as such, are a popular place to live.
“E14 (Canary Wharf) is a longstanding winner too. There are 120,000 jobs in the Canary Wharf estate and that is set to almost double in the next decade. Jobs bring people so this is an area that will continue to grow in popularity as a place to live. The Elizabeth line opens at the end of the year, linking the old City at Liverpool Street to Canary Wharf in just two stops – another draw of living in Canary Wharf.”
