Infrastructure improvements will bring significant increases in office values across the capital. Nadia Elghamry reports on where the smart money is investing
It’s 2030. London’s iconic transport map has changed. The ribbons are about to be cut to open Crossrail 2, and the Northern Line extension has been running for a decade. But the smart money isn’t waiting – it’s piling in now. For example, around Charing Cross Road alone, Soho Estates, Great Portland Estates, Derwent London and Almacantar have already announced plans to redevelop more than 1m sq ft of space and build 250 homes.
Using research from Carter Jonas, Estates Gazette shows you how and where to put your money to grab a share of the forecast £1.2bn increase in office values along the two lines. The bigger the circle, the bigger the increase in value; the hotter the colour, the greater the percentage increase from 2013’s capital value.
Increases of £360m could be made along the extended Northern Line. But Crossrail will deliver the biggest gains, with Carter Jonas estimating office values could increase by £830m above general improvements in the market. Euston/King’s Cross, Tottenham Court Road and Victoria will see the biggest benefits, with capital values increasing by £100m or up to 7%. They are already pretty safe bets. Fancy taking more of a punt? Dalston, Tottenham Hale and Shepperton could rocket 15%, the agent believes.
But mind the gap. Hackney, Kennington and Surbiton are likely to see the least benefit, with office values rising less than 5% and below the £5m mark.
Of course, 15 years is a long punt and with the government’s spending review looking at the case for Crossrail 2 in detail, investment is not for the faint-hearted.
nadia.elghamry@estatesgazette.com
