Areas such as Clerkenwell, Aldgate and Shoreditch are seeing a huge demand for property as potential buyers look to take advantage of the recent regeneration of the areas, property service giant JLL has reported.
Over the last five years Shoreditch has benefited from the emergence of Tech City and has seen rapid change whilst Aldgate is rapidly establishing itself as one of London’s leading commercial quarters.
Bernard Cully, head of sales at JLL’s City office, said: “We are experiencing an extraordinary increase in demand in areas such as Clerkenwell, Aldgate, and Shoreditch, i.e. the City Fringe, from a diverse range of buyers.
“The majority of demand comes from owner occupiers who wish to be close to work in The City and the buzz of Shoreditch whilst also taking advantage of the improved leisure and retail amenities which are in place as a result of the recent growth of areas like Aldgate.”
And its not just City workers that are looking to capitalise with investors now looking to take advantage of the areas capital appreciation potential with Crossrail set to be completed by 2018.
Cully said: “The area is popular with investors who, most of which are UK based and can see the potential for this expanding location, thanks to plans for Crossrail at Whitechapel and Liverpool Street, making this area one of the best connected in London.
“Despite a considerable price increase over the last year, investors wish to capitalise on the good value and great returns in comparison to other central areas.
“For example, we recently sold a studio apartment at Avant-garde, Shoreditch, for £445,000 – that’s £1,088 per sq ft, which is an increase of £471 per sq ft (43%) since its completion in December 2013. Canaletto, a scheme being developed by Orion City Road Trustee and Groveworld, is another example of the high demand levels; over 90% of the units have been sold, off plan, prior to its completion in early 2016.
“In terms of supply, there is a good supply of one and two bed homes at schemes including Avant-garde and Cityscape, however, due to the incredible demand for these properties there isn’t a huge amount available. Additionally, as three beds are in less supply, when enquiries come in for one the completion rate tends to be more certain.”