London’s Crossrail is Europe’s largest infrastructure project and come at a significant cost — around 16 billion pounds. Its impact on the city will be far-reaching as it offers improved access to and from Central London, running from west to east, cutting straight through the heart of the capital.
Not only will commuting times be cut, there will also be a lot more trains each hour from most locations, giving better overall access. Each train will be 200 metres long and will hold a maximum of 1,500 passengers. Crossrail will cut journey times by up to 40 minutes and increase capacity on the capital’s transport network by 10 per cent, which will enable 200 million passengers a year to make their way in and around London.
The step change in both connectivity and capacity will open up new parts of London as well as trigger wider investment and regeneration in certain locations. As a result house prices are predicted to appreciate considerably over the coming years around host stations of Crossrail.
In property terms, Crossrail will be a game changer. It has already affected key investment decisions, acting as a catalyst for further development and providing a significant boost to property values. Job creation, luxury apartments, new offices and retail are all areas which have already witnessed the positive effects of Europe’s largest infrastructure project.
London is changing. Homeowners, tenants and investors alike are now starting to look for value in and around London. More and more people are looking to lower their monthly outgoings which equates in smaller mortgages and lower rents.
Central London prices continue to show strong gains which is pricing homeowners and tenants out of the market, forcing them to look at other locations outside of more central and well-known areas and into areas of regeneration that are well-connected.
These are the same exact reasons as to why I am very fond of Slough, Ilford, Hayes and West Drayton. These four locations will appreciate in value and will change over the coming years making them very desirable places to live and still within 30 minutes to Central London.
For savvy property investors out there, Crossrail locations are worth serious attention as they currently offer significant value. Each station on Crossrail will see varied price appreciation as some areas are nicer, more desirable or simply better positioned than others. What we need to look at now is what areas along Crossrail will be the top performers.
Crossrail is seen to be THE single biggest driver of growth in the London property market over the coming decade.
Commuting distance into Central London will always be a key factor in making a decision on where to buy or rent a property. Forty parts of London will see their connectivity increase significantly. With an average reduction in travel times across London of 15 minutes, the services will make areas through which it passes more attractive to residents, buyers and tenants. This in turn will drive and increase both property prices and rental yields.
Locations I like personally are towns such as Hayes, Slough, West Drayton and Ilford — all of which will gain massively from the Crossrail and improved access to Central London. I also like these locations as, when Crossrail completes (estimated 2018), from each of these aforementioned towns we will be able to access Prime Central London within 30 minutes.
While this is true for most Crossrail stations, I do see huge value in these property markets as I feel they are currently hugely undervalued. Slough for example will not only benefit from improved transport links into Central London, but itself has a 450 million pound regeneration project planned giving Slough Town Centre a whole new look with modern amenities.
The master plan includes 1,600 new homes, a hotel and 34,000 square feet of high-quality office space. The job scene is also very strong in Slough with 4,000 jobs to be created over the coming years.
Investors looking beyond the high prices of prime central London are viewing Europe’s largest infrastructure project, Crossrail, as the catalyst in generating significant returns to investments across England’s townships and countryside.
The writer is the Middle East head at IP Global.
