Date: 30.11.16 Author: Arik

Earlier this year OffMarket Invest successfully launched and fully sold out a luxury new build development in Crawley. All units sold out exceptionally quickly. It is our belief that the proximity of the development to Gatwick Airport played a large part in both attracting owner occupiers and investors alike.

The economic impact of having a major airport on your doorstep and how it improves your property investment.

Earlier this year OffMarket Invest successfully launched and fully sold out a luxury new build development in Crawley. It is our belief that the proximity of the development to Gatwick Airport played a large part in both attracting owner occupiers and investors alike.

The development was situated on Crawley High Street, just 2 miles from Gatwick Airport and sold out in record time during the off-plan stage. The development was quickly tenanted shortly after completion by a host of professionals including a variety of workers from Gatwick Airport.

Crawley’s commute to Central London (just 45 minutes by train) also gave our investors the opportunity to benefit from an increasing selection of professionals who have been relocating to commuter towns outside the Capital.

Gatwick Airport plays a significant role in influencing the local economy and is a major employer in the area. Choosing an investment wisely with an ever-expanding employment base on your doorstep ensures that rentability and resale, two key components of a successful investment, are fulfilled.

With this in mind, our research and analysis team at OffMarket Invest have carried out a lot of studies over the past few months and our findings have brought us to another incredibly interesting area next to a major airport and this time a mere 23 minutes from London.

Luton has an absolutely fascinating story behind it with an incredible £1.5 Billion being invested in the area over the coming years. It is also home to London Luton Airport, the 5th busiest and fastest growing airport in the UK, supporting over 27,000 jobs. Passenger numbers are growing at a record rate with the capacity of the airport increasing from 10 million to 12 million passengers per year in 2015, substantially ahead of its original anticipated plans.

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Luton Airport is currently undergoing a major £110 million expansion plan that will increase the airport’s capacity even further from 12 million to 18 million passengers per year by 2020.  That’s over 49,000 passengers passing through the airport each day.

This initiative alone is going to create an extra 5,000 new jobs in Luton Airport and put a significant strain on an already heavily undersupplied property market, where the severe shortage of homes led to house price growth of 22% in 2016 according to the Office for National Statistics.

In conjunction with this initiative, a new business park stretching over 400 acres known as the London Luton Enterprise Zone is also going to be built next to the airport, providing over million square feet of office space and creating an extra 7,000 new jobs.

That’s 12,000 new jobs to be created in the next 3 to 4 years from the airport expansion alone. With a least 30% of airport workers living in Luton it means at least an extra 3,600 new potential professionals will be looking for accommodation and putting more strain on the housing market in Luton.

A report carried out by consultancy firm Oxford Economics in 2015, revealed just how significant the economic impact of Luton Airport is for the surrounding region with the airport currently contributing a staggering £1.3 billion pa to the economy. By the time the full effects of the £1.5 billion Luton Investment Framework have been felt it is estimated that Luton Airport will contribute an astounding £2.3 billion to the economy by 2030.

The Oxford Economics report also showed that the airport creates a large proportion of highly skilled jobs for the region. The figures show that the average gross wage at London Luton Airport is £38,000 pa, compared to the national average of £27,000. In addition, 40% of the new jobs created will be in management, professional or skilled occupations.

Furthermore, exciting plans have been revealed for a state of the art Mass Passenger Transit system linking Luton Airport Parkway to the actual terminal at Luton Airport. At present passengers have to wait and get a shuttle bus to complete the journey. The MPT system will be a fully-automated, two-way, 24-hour, guided light rail people mover, covering a distance of 2.2km. Once complete, the rail link will provide a direct journey between London St Pancras and the airport terminal within 30 minutes. A total journey time of less than 30 minutes from St Pancras to the airport will beat the time from Liverpool Street to Stansted by 20 minutes and better the time from Victoria Station to Gatwick too. This is going to clearly increase passenger numbers even further hence leading to even more job creation in the area. 


Our development of luxury new-build apartments in the heart of Luton town centre is just 400 metres from Luton train station and as such perfectly positioned to appeal to professional tenants who are only 5 minutes from the Airport and just 23 minutes from central London.

As more businesses relocate their operations to Luton and as more people are squeezed of out of the London market, our investors will benefit from incredible potential for steady rental income and substantial capital growth.

To find out more about this investment opportunity please contact the OffMarket Invest team today or register your details on this website to be contacted by one of our consultants.

 

Arik Agamian

Investment Director

 

D:

+44 (0) 161 870 6471

 

M:

+44 (0) 78 359 06357

O:

+44 (0) 161 870 2403

W:

 offmarketinvest.com

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