London property keep a track of the Crossrail.
By Jennet Siebrits, Special to Gulf News
The impact of London's Crossrail on property prices has been analysed in great depth since its announcement , with the projected upswing in house values blossoming as the mammoth new transport network nears completion.
Due to service 40 stations between Reading and Heathrow in the west, and Shenfield and Abbey Wood in the east, Crossrail will open up new parts of London and cut journey times into Central London by an average of 15 minutes.
This drastic reduction in commuting times has already had a pronounced effect on the residential market. Since the parliamentary approval of the Crossrail Act in July 2008, CBRE Residential has estimated an average increase of 31 per cent in property prices around host stations.
The completion of Crossrail - now christened The Elizabeth Line - in 2018 will see 1.5 million people living within a 45-minute commute of Central London, with 200 million people expected to use the system each year. The demand for this comprehensive new infrastructure network has had a strong impact on property prices as buyers seek homes within a short distance from host stations. As a result, homes near Crossrail stations are expected to experience a total uplift of Au133,000 (Dh711,204) by the time the new line opens in 2018.
In a continuation of the recorded 31 per cent average upswing in property values since July 2008, a revision of our existing forecasts demonstrates that property prices around Crossrail stations are set to increase by a further 3.3 per cent per annum over and above wider house price growth. This anticipated increase exceeds our earlier estimate, demonstrating an unwavering interest in property along The Elizabeth Line.
Our research suggests that a 10 per cent reduction in commuting times can result in an increase of 6 per cent in residential values. And while the completion of Crossrail will provide a widespread reduction in journey times, not all time savings are equal. Stations in west London will see a more pronounced reduction in travel times compared to those in the east, at an average 25 minute reduction in comparison to an average of 7 minutes in the east.
The upswing in average house prices across The Elizabeth Line largely reflects this variation in time reduction, with the east expected to witness a less pronounced house price increase of 2.1 per cent to the anticipated uplift of 3.8 per cent in the west.
However, certain areas stand in opposition to this rule, with Abbey Wood and Greenwich due to benefit from a time saving of 25 minutes on average and a projected house price increase of 5.8 per cent per annum as a result. This partly reflects the associated regeneration in these areas, which act to further boost prices.
Properties in Central London are due to gain the most from the new Elizabeth Line, with house prices expected to increase by an average of 4.8 per cent over and above wider inflation.
In certain areas enhanced transport links have already acted as a catalyst for regeneration of the urban realm, for example in the area around Tottenham Court Road. Farringdon is also set to benefit dramatically, with an average increase of 6.6 per cent in property prices in the area due to strong business opportunities within its key City Fringe location.
Whilst the positive impact of The Elizabeth Line is already being felt across London, we will not know the full impact of this remarkable new infrastructure system until a year or more after it completes in 2018, and will be watching intently to see the impression Crossrail leaves on the residential market.
The writer is Head of Residential Research at CBRE.
[c] Al Nisr Publishing LLC 2016. All rights reserved. Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Publication:||Gulf News (United Arab Emirates)|
|Date:||Apr 27, 2016|
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