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News: E14 the Jewel in Docklands crown

Mon, 03 Mar 08

Now is an excellent time to invest in London’s Docklands, claims Savills...

Last year, £1000 per square foot was achieved for residential units in E14 and annual growth in values was 16% in 2007. This was the highest level recorded in any of the prime Docklands submarkets.

Annual growth in prime residential capital values in E14 stood at 16% in December 2007, with the average new flat price of £369,000 achieved in 2007 - 22% higher than the average price of a flat across Greater London.

International buyers accounted for over a third of all prime property purchases in E14 - a key indicator that this is now an established market where non-domestic buyers are happy both live and invest.

Future supply in E14 includes 13 schemes in the planning system with a potential to deliver 5800 units, at a rate of 1200 units per annum over the next 5 years.

Long term prospects

A spokesperson for Savills commented: “In recent years, investors have been a significant source of take-up in E14 accounting for around 70% of units on many schemes. This demand makes large developments more viable through the ability to sell large numbers of units at an early stage in the development process.

“Residential investment demand is likely to weaken in 2008 as a result of the ‘credit squeeze’ and tighter lending criteria, alongside weaker prospects for capital growth. However, the prospects for the medium and long term are more positive. Findings from our Buy-to-Let survey at the end of 2007 revealed that most investors have long term ownership aspirations and their property plays an important role in their pension provisions”

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