Lower average capital values in the east of London provide developers with the opportunity to build homes that are affordable for those living and working in the capital. Areas that were previously disused, industrial wasteland are becoming increasingly residential through a recovery of land values, improvements to infrastructure and large scale regeneration.

While the regeneration triggered by the Olympics has played a huge part in bringing investment into the area, there is potential for further growth with the arrival of the new Crossrail line from 2018 which will open up new parts of East London.

Construction is well underway and stations in the area will include Canary Wharf, Stratford, Custom House and Woolwich. The new train line has already sparked strong interest from investors and driven strong sales and price growth.

Land buying is up

There has been a considerable increase in land buying activity in the Canary Wharf area over the past 18 months, and plenty more in the pipeline. Over this period there have been 12 significant land deals with potential to deliver a range from over 100 units to almost a thousand each, totalling 5,866 units.

Two significant schemes make up the bulk of these units. Canary Wharf Group (CWG) is due to launch Newfoundland and Wood Wharf, which together have the potential to deliver 5,066 new homes (of which 3,493 will be private).

Over to the east of the Canary Wharf estate, Wood Wharf will consist of 4,500 new homes, together with office and retail space. The masterplan 
by Terry Farrell, which makes the most of the waterfront, has paid particular attention to public realm and spaces between the buildings 
by including parks, public squares, retail and event space.

In order to capitalise on the growth of the TMT sector in London, diversify their commercial offering and nurture new talent, the developer intends to create a technology accelerator space where members can mix with other entrepreneurs, industry experts and investors in a similar vein to their Level 39 concept in One Canada Place.

Strong sales rates

Along with the rest of London over the past two years, Canary Wharf has experienced strong sales rates. According to Molior, 330 homes at Baltimore Tower sold in approximately nine months. Prices ranged from £900 to £1,200 psf, with the higher level floors achieving above that. Schemes at Royal Docks have also been in demand. At Royal Gateway by Galliard Homes, 271 out of 336 homes sold in one weekend according to Molior. Oxley Holdings’ Royal Wharf also saw high volumes of sales.

International Quarter

As well as Westfield and East Village, the former Athletes Village, Stratford is also home to The International Quarter (TIQ), a mixed use scheme by Lend Lease on the site of the Olympic Park, with 4 million sq ft of new workplace, 25,000 new jobs and three acres of open space in the centre.

Approximately 20% of the development has already been 
pre-let as a result of attracting two big commercial tenants – Transport for London and the Financial Conduct Authority (FCA), which will move 
from its current headquarters in Canary Wharf.

Demand for more homes attracts overseas interest

We estimate that London needs to build 50,000 new homes a year to cope with the growing demand of an expanding population. The scale and urgency of the challenge needs huge, long term investment and Asian investors are playing a vital role in opening up new parts of the capital and contributing large numbers of new homes to the mix. Many are attracted by the vitality and accessibility of London’s property market which many view as stronger than their weakening domestic ones. By teaming up with local development partners, the Mayor of London and local boroughs, these players are adding a significant number of new homes to the London market. Over the past year, the Asian developers below have gained permission for just over 8,000 units:

Taken from
London Development: Building opportunities East of City