If you have not yet heard about the new cross rail project in the UK, you have missed out on one of the most innovative and talked about building projects for generations. It will essentially provide fast and accessible transportation links between London and the surrounding regions in the South West and South East.
The project has been inspired by a rise in the number of people who desire to work in the capital while living in surrounding, nearby regions for the purposes of commuting. Initial numbers also suggest that up to 200 million customers will use the cross rail each year once it is complete, creating jobs and driving huge economic growth in the process.
How will the new Cross Rail station impact on Capital Property Prices?
With the project set to launch in 2018, it is worth anticipating the impact that it will have on property prices within the capital. While the aforementioned numbers are relatively vague at present, the development company’s land and property director Ian Lindsay has claimed that the Crossrail project is expected to add a cumulative £5.5 billion to the value of London real estate. This increase has been largely linked to houses located along the precise route covered by Crossrail, starting with Reading in West and running to Abbey Wood in the East.
We must also factor in the regeneration that is being proposed for the precise areas above the proposed Crossrail station, with an estimated 3.3 million square feet of residential, office and retail space being developed. This represents huge change for the region, and while it is fair to say that railway development has always served as a catalyst for regeneration this project marks the first instances of these events happening in tandem.
While the project has been welcomed as positive news and will slash journey times by London considerably (in addition to increasing the capacity of the Tube by up to ten per cent), the sudden increase in property value may not be such a welcome development. After all, the spiralling cost of London homes has become a major issue in recent times, with the average cost of residential real estate in regions such as Kensington and Chelsea rising beyond the £2 million mark last year.
Thinking Beyond Crossrail: The near-term future for London Real Estate
In pure logistical terms, this Open Property Group crossrail graphic shows just how positive the development will be for the region. Those looking to buy homes in the capital may be perturbed by the potential for rising costs, however, even with more even growth of five per cent forecast tentatively for 2016.
The project will at least increase the supply of housing in London, however, creating a more balanced market that can sustain reasonable price growth in the long-term. In this respect, the Crossrail project may well be the best thing to happen to the market for a while.