London, 5 June 2014, Crossrail 2 (CX2) and the full-length Northern Line Extension (NLE) to Clapham Junction, could see residential capital values along the route increase by as much as £32 billion and existing office capital values increase by up to £5.8 billion, according to Carter Jonas’ ‘Track to the Future’ research report launched today.
Carter Jonas has looked at the extent that CX2 and the NLE will impact London’s residential and commercial property values. Key findings of the report are:
• Locations that could be set to see major absolute increases in residential value include: Euston/Kings Cross St Pancras, King’s Road Chelsea, Clapham Junction, Tooting Broadway, Wimbledon, Battersea Station and Nine Elms. Overall the average impact rate may be up to 50% over existing values. Within these markets, some are forecast to rise much more significantly.
• Across the office sector, stations in the Central Activity Zone, particularly Euston/Kings Cross St Pancras are likely to experience the biggest increases in absolute value terms. Battersea Power Station and Nine Elms are also predicted to witness major absolute improvements in values, from a relatively low current level.
Catherine Penman, head of research, Carter Jonas said: “With London’s population set to grow significantly, further improvements to the capital’s infrastructure are imperative. Not only will Crossrail 2 and the NLE significantly spread the value heat map of London north and south, the schemes will assist in regeneration terms. Implementing CX2 is an essential platform to London’s continued growth.”
Tim Shaw, head of central London development, Carter Jonas said: “The impacts of CX2 and NLE on property values will be substantial and are already demonstrated by the success of Battersea Power Station. However it is not just about value increases. There will be major regeneration benefits, as well as the opening-up of a range of development opportunities and we see the GLA and London Boroughs playing a crucial role in providing a positive planning framework to realise these opportunities”