East End is where London’s real estate action is
Extensive redevelopment and new builds are making it the place to work and play
This part of East London and the City fringe has established itself in recent years as the third-largest tech startup cluster in the world. But it’s no longer just for start-ups, with global giants like Google, Amazon and now LinkedIn relocating there.
Taking 50,000 square metres of space in Principal Place (Shoreditch), Amazon’s move, along with LinkedIn’s new 8,000 square metre Farringdon HQ, re-emphasises the popularity of the area for tech-focused, creative populous of London.
For the housing market, this means that demand in Shoreditch and Farringdon has been consistently high, as people move to the area for its central location, leisure and entertainment offerings and, now, work. The focus for developers has been shifting over the last 10 years on the East part of town, and over the course of the past five years, we have seen schemes with higher specifications, design principles and hotel-like amenities matching what was previous been on offer in western parts of the city.
Farringdon has been a standout performer in the London market. Since the Elizabeth Line (Crossrail) was approved in 2008, the area around Farringdon station has experienced an average outperformance of 34 per cent to its property prices within a 10-minute walk of the station.
Failing to meet need
Combined with this, housing delivery in the Mid-City area is failing to keep up with official estimated need in each of the four boroughs (Islington, Camden, Westminster and the City of London).
Taken together, 3,231 additional dwellings were delivered during 2016-17, while the estimated annual need is 5,766.
This area has been earmarked as the one to watch, with high quality residential and commercial developments taking place.
Postmark, by Taylor Wimpey Central London, is one of the Capital’s last major Zone 1 development sites and a best-inclass example currently under construction. The project is perfectly positioned to benefit from London’s creative, legal and technology quarters.
With significant growth in London’s TMT sector, developers have had to respond to demand for higher levels of specifications and finishes in East London, resulting in a noticeable increase in the quality of the public realms and residents’ spaces.
What is also noticeable is the shift in buyer demands, with them looking to balance their work and home environments with areas to socialise and keep fit. So entertaining spaces are becoming more popular and the new norm.