Date Published 22 November 2012
Crossrail could help create £5.5 billion in added value to residential and commercial real estate along its route between 2012 and 2021 according to new research for Crossrail by GVA, the UK`s largest independent commercial property consultant.
Crossrail will support the delivery of over 57,000 new homes and 3.25 million square metres of commercial space
Significant property investment could take place at locations including Canary Wharf, Farringdon, Whitechapel, Abbey Wood, Custom House, Ealing Broadway, Southall and Woolwich
Crossrail is already having an impact on property investment decisions particularly in central London
The impact of Crossrail on residential property market will also extend out to Berkshire and Essex
First detailed study looking at the property impact of Crossrail on London and the south-east
The report illustrates how Crossrail will have a marked impact on a number of central London and suburban locations along and around the Crossrail route where the new railway will help stimulate investment in commercial activities, retail and housing. The report findings unveil which areas these are, and what the scale of those changes is likely to be.
Crossrail is among the most significant infrastructure projects ever undertaken in the UK. From improving journey times across London, to easing congestion and offering better connections, Crossrail will change the way people travel around the capital. Crossrail`s new stations will revitalise the concept of the station being the centre of the community it serves.
Building the new railway involves constructing eight new stations in central London and Docklands and upgrading many existing stations. Stretching from Maidenhead and Heathrow in the west, across to Shenfield and Abbey Wood in the east, the new railway will cover 118km of track including 21km of new twin-bore rail tunnel. Crossrail services are due to commence in 2018.
Crossrail will, for the first time, 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 Crossrail each year.
Crossrail will also create quality new buildings above and around its new stations, benefitting workers, residents and visitors for generations to come. The improvements in journey times and the frequency of services provided together with this investment in London`s built environment will have a significant impact on London`s commercial and residential market.
The report`s key findings include:
Crossrail is already having a positive impact on investment decisions and at many locations Crossrail will be influential in supporting and influencing new development;
Commercial office values around Crossrail stations in central London will increase over the next decade, with an uplift of 10 per cent in capital value above an already rising baseline projection;
Residential capital values are projected to increase immediately around Crossrail stations in central London by 25 per cent, and by 20 per cent in the suburbs, again above a rising baseline projection; and
In many locations, Crossrail will have a transformative effect on the property market and development activity over time.
Areas where they are likely to be distinct or large scale impacts on the property market as a result of Crossrail include:
Crossrail central section: Tottenham Court Road, Farringdon, Liverpool Street and Whitechapel;
Crossrail western section: Ealing Broadway, Southall, Hayes & Harlington, Slough and Maidenhead;
Crossrail eastern section: Stratford, Ilford, Seven Kings, Goodmayes, Romford, Brentwood and Shenfield; and
Crossrail south-east section: Custom House, Woolwich and Abbey Wood.
Mike Taylor, Director at GVA said: "One of the biggest impacts of Crossrail will be on the commercial and residential property market with additional value of as much as £5.5bn generated along the route. Crossrail will have a distinct impact on the residential property market not just in London but also several areas in Essex and Berkshire. 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. 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."
Andrew Wolstenholme, Crossrail Chief Executive said: "Crossrail is already having an impact on property investment decisions. In many areas, Crossrail will have a transformative impact as a result of new journey opportunities and direct access to London`s major employment areas. The new Crossrail stations will be spectacular and are being developed to maximise the regeneration opportunities brought by the new railway. Crossrail will support the delivery of over 57,000 new homes and 3.25 million square metres of commercial space along with significant public realm improvements, which will leave a lasting legacy for London."
The Mayor of London, Boris Johnson, said: "Crossrail is vital to support London`s growing population and to ensure our city`s future economic prosperity in an increasingly competitive world. These latest figures demonstrate the impact of this ambitious project is already taking hold, creating jobs and sparking regeneration across the capital. This is good news not just for Londoners but for the nation`s economic health as a whole."
Transport Minister Stephen Hammond said: "Crossrail will revolutionise travel across London and the South-East, delivering faster journey times and bringing an additional 1.5 million people within 45 minutes of the capital`s business centres. It will bring a significant boost to the regional and national economy - not only by facilitating employment growth but also by stimulating investment in the property market along the line of route."
Liz Peace, chief executive of the British Property Federation, said: "Modern and reliable infrastructure is vital for economic growth and the case for further investment is compelling when you see the benefits of the Crossrail project clearly spelt out.
"As well as acting as major catalyst for regeneration along its route, Crossrail demonstrates that investing in infrastructure makes sound economic sense. Every pound of properly targeted infrastructure spend can generate up to ten 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. Also having played its part in helping to fund Crossrail through the Mayor`s CIL the property industry will be pleased to see that there`s ultimately an economic upside at the end."