Crossrail 'to boost property values by £5.5bn'
Wed 17 October 2012, 6:32 pm
Crossrail will support the delivery of over 57,000 new homes and 3.25 million sq m of commercial space, boosting property values by some £5.5 billion, according GVA.
Commercial property consultant GVA said significant property investment related to the east-west rail link due to open in 2018 was expected to take place in Canary Wharf, Whitechapel, Ealing Broadway and Southall, among other locations.
The 224-page study - the most detailed of its kind to date - said the impact of Crossrail on the residential market would extend out to Berkshire and Essex.
GVA said the value-added figure for residential and commercial property looked at Crossrail’s route contrasting this year’s prices with those expected in 2021.
It said Crossrail was already having a positive impact on investment decisions and that that commercial office values around Crossrail stations in central London would see a 10% rise in capital value over the next decade “above an already rising baseline projection”.
Meanwhile, central London residential capital values were expected to increase by 25% for properties around Crossrail Stations, while those in the suburbs would rise by 20%, again against a rising baseline projection.
GVA director Mike Taylor said: “As a result of significantly improved transport connections, areas such as Abbey Wood, Woolwich, Ealing Broadway and Southall are highlighted as future places to watch,” he said.
“Crossrail is more than a new rail link; it will be the catalyst for regeneration and a key driver in maintaining London’s position as a leading global city.”
British Property Federation chief executive Liz Peace said modern and reliable infrastructure was vital for economic growth, and that the Crossrail project clearly spelt out the case for investment.
“As well as acting as major catalyst for regeneration along its route, Crossrail demonstrates that investing in infrastructure makes sound economic sense,” she said. “Every pound of properly targeted infrastructure spend can generate up to 10 times the initial investment in broader economic terms, and the new homes and office space will help in an area of high demand and constrained supply.”
Transport minister Stephen Hammond said Crossrail would bring an additional 1.5 million people within 45 minutes of the capital’s business centres.
Crossrail will produce a direct connection between all of London’s main business centres, linking Heathrow, with Paddington, the West End, the City and Canary Wharf. Up to 24 trains per hour will operate in the central section between Paddington and Whitechapel during peak periods, with each train able to carry 1,500 passengers. An estimated 200 million people will travel on the line each year.
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