Knight Frank (KF), a highly respected real estate firm based in London recently released their Autumn 2011 Report on the Top 13 Residential they expect to outperform prime central London property by 2016.
It estimates that in these identified “hotspots” new-build redevelopments (conversions and new construction) will increase in value by more than 30% by the end of 2015. Key factors which will contribute to the price growth in these currently non-central price point areas are: a) New development initiatives, b) Significant improvements to transportation/access via the planned London “Cross-rail” project which will transfer people to/from prime work areas (The City, Canary Wharf) in reduced times. c) Current underdevelopment of new housing, which is expected to result in an under-supply of housing necessary to meet London’s future expected population growth, in areas not currently viewed as “prime central London”.
3 of the Top 5 Hotspots as ranked by KF – 1) City of London – due to influx of wealthy residents in last five years and the development of the Heron Luxury residences and Four Seasons Hotel and accompanied by a new Cross-rail station at Whitechapel 2) Earl’s Court – After the 2012 Volleyball Olympics the Earl’s Court Exhibition Centre will be re-developed. Already a beautiful area that perhaps lacks a cohesive identity, KF reports that housing development plans for 7,500 units close to a new park will draw Earl’s Court into the ‘prime central-London” category 3) Hammersmith – The local planning commission has become more accomodating in recent years enabling developers to negotiate on housing stock types in this area. Almost halfway between London’s West End and Heathrow Airport, Hammersmith is well connected transportation-wise and will most likely see a natural increase in overflow housing demand from London’s currently prime locations just to the east.
Knight Frank’s in-depth report (Click Here for the Full Report) provides great insight to anyone currently living in London or planning to invest in London property in the next ten years. If you are interested in London property and don’t know an agent, ask me to refer you. I have had many clients transfer back and forth between Manhattan and London over the years and have personal real estate connections in London. This report to me reflects the potential for future value growth for prime Manhattan locations for many of the same reasons. – Tony Sargent