Report identities new build development hotspots in London
Hotspots have been identified in London where there is the potential for new build home values to outperform the wider market in the next two years.
The 18 residential development hotspots range from Southall in the West of London to Tottenham Hale in the North and West Ham in the East.
The report from real estate firm Knight Frank says that a combination of regeneration schemes, upcoming transport infrastructure upgrades, or wider place making have underpinned each area’s selection.
The hotspots identified feature a wider geographical spread than previous reports. In terms of values, the majority are localities where new build developments are priced at under £800 per square foot most are also outside zone 1.
‘This emphasises the changing landscape for development in London, with a greater focus on affordability,’ the report says.
‘Given the more muted pricing landscape across the capital, the potential price growth needed in hotspots to outperform the wider market may not be as high as in recent years, and in some areas of the capital, relatively modest growth will be seen as outperformance,’ it explains.
The price growth is forecast between now and 2020 which encompasses the opening of the Queen Elizabeth Line (Crossrail).
‘In many cases the opening of the high speed rail link from the end of next year has already been priced into sales values in and around station hubs, although for stations where large-scale development is still in the pipeline, pricing could reflect this in the future,’ the report points out.
‘Transport infrastructure upgrades, regeneration and realm change are all factors which can feed into new build and second hand market pricing,’ it adds.