The developments in transport and infrastructure in The Royal Docklands in London cannot be underestimated. The imminent opening of Crossrail, major upgrades to London City Airport and unprecedented inward investment makes this postcode in London a key investment area.
Key Factors influencing growth in The Royal Docklands, London.
1. Enormous Inward Investment
The Royal Docklands are situated in London’s third financial district. The area is set to benefit from over £6billion of inward investment. Up to 60,000 new jobs will be created. The Asian Business Hub alone, phase one of which is completing in 2018 will employ a total of 30,000 people. Already 65% of Commercial buildings in phase one are under offer and have leases signed up. Chinese investment into the area will create another 3.5 million sq. of office space and 1.2 million sq.ft. of retail and leisure space.
2. The Opening of London’s Crossrail
Crossrail at Custom House will cut journey times to Liverpool Street from 24 minutes to just 10 minutes. Journeys to Paddington will be reduced from 42 minutes to just 20 minutes. A recent report by Knight Frank regarding the impact of Crossrail shows that prices near Custom House increased by 16% in one year. Obviously this effect will be more exaggerated when Crossrail actually starts operating. Furthermore, the report showed that proximity to Custom House Crossrail station is likely to have an annual increase in house price growth of 4.53% ABOVE the normal rate of growth in the docklands. (Print screen below)
3. London City Airport £350 million expansion
Extra 2,000 jobs to be created. Additional £750 million pa to be contributed to the local economy. Airport already serves 52% of all business travellers in all of UK. Extra capacity to increase to 6.5 million passengers per year. Introduction of long haul flights to the Gulf and Middle East and Russia and USA.
4. Proximity to various transport links
Cable Car, Docklands Light Railway, Tube at Canning Town, Clipper ferry, and Crossrail all underpinning house price growth.
5. Business Enterprise zone
Business rate tax relief and Capital Allowances make it more attractive for businesses to relocate to the area. Average commercial rents in the docklands are at £37 per sq.ft compared to £52 in Canary Wharf.
“Companies in China have outgrown their domestic market and they need to expand abroad in order to thrive,”. ABP estimates that rents at the development will stand at 37 pounds a square foot in 2018, compared with 52.84 pounds in Canary Wharf.
6. More affordable than wealthy neighbouring boroughs
The Royal Docklands offers more potential for Growth compared to neighbouring Canary Wharf. Here the average residential price is c £1,150 per sq.ft. for new-build property. Compared to The Royal Docklands at c£700 to £800 per sq.ft.
OffMarket Invest are offering exclusive property opportunities in The Royal Docklands just a short walk from Royal Victoria DLR.