How Crossrail Will Impact Development Around Six Central Stations
Crossrail is Europe’s largest construction project, and the biggest infrastructure scheme to be undertaken in London for 20 years. The high-speed rail link will run from Reading and Heathrow in the west through 26 miles of new tunnels under London to Shenfield and Abbey Wood in the east, knitting together communities that have been isolated for decades. When fully implemented, 1.5 million more people will be within a 45-minute commute to key business districts. We're taking a look at Crossrail's impact on six central London commercial zones.
Whitechapel is the biggest winner in the Crossrail derby, according to JLL. It's already experiencing significant regeneration, and Crossrail will raise its profile and consumer and developer interest. Research by Knight Frank says homes within a 10-minute walk of Whitechapel station could be 26% more valuable by 2018.
Developer L&Q has received the go-ahead to build 564 homes and 38k SF of commercial space near the future Crossrail station, and Hilton will build a £76M hotel at Aldgate, just a hop away from Whitechapel.
JLL said it was the best place to develop for sale, with Ealing, Broadway and West Drayton following.
Paddington’s evolution is happening at hyperspeed. JLL predicts property prices will increase by 15.4% by 2020. It scored Paddington 7/10 for both the most pleasant place to live, and for new development opportunity.
With Crossrail, Heathrow Airport will be just a short hop away, which will be ideal for international business or regular travellers. Taylor Wimpey’s Paddington Exchange is a luxury apartment development that's capitalising on how connected and vibrant Paddington is. The project is slated to open in 2020.
British Land has gone big at Paddington Central, investing in 800k SF in the area, with another 146k SF under construction and 210k SF of consented future development.
Irvine Sellar, the developer behind The Shard, has chosen Paddington for his newest project, Paddington Cube. And the NHS caused a gold rush when it announced it would be selling a hospital right next door to the Cube.
Analysis by JLL found that the Crossrail’s influence will be marginal; more likely, the myriad co-working spaces and tech companies that are moving in will have more of an impact.
Tottenham Court Road Station
Tottenham Court Road historically was relatively neglected, despite the good location, and property values reflected that. But the £1B regeneration has already triggered confidence, particularly in retail.
The advent of Crossrail in 2018 will recast Tottenham Court Road station into the West End’s major transport hub, offering both tube and train services to more than 120,000 passengers each day. Derwent London plans to leverage those statistics with One Oxford Street, its new 275k SF mixed-use project on two sites designed by AHMM. The scheme comprises a new eight-storey building at One Oxford St on the corner with Charing Cross Road with three levels of new retail plus eight floors of office space above. On Charing Cross Road, a second eight-storey building will include a 34k SF theatre on the site of the old Astoria—the first new West End theatre built in over a decade.
Tottenham Court Walk is expected to see an increase in footfall of more than 75 million a year, equating to 110 million potential customers.
Galliard Homes is building 18 apartments and penthouses with multilevel roof gardens about a block away from the new station as well.
The station upgrade works are expected to complete in spring 2017 with Crossrail services due to commence in December 2018.
Liverpool Street Station
JLL predicts housing prices will increase around the Liverpool Street station by 44% between 2014 and 2020, and it’s easy to see why. With easy access to east London, where tech companies are booming, the area would be attractive for homes even without the new Crossrail. But with better transport, residential development has galvanized. The Fusion on Cygnet Street features 26 apartments spread over five floors. A 10-minute walk away in Shoreditch, Galliard Homes’ £800M mixed-use development, The Stage, is massive. It is centred around the remains of a Shakespearean theatre.
Jaguar Land Rover’s tech incubator, InMotion, recently opened its first office in Shoreditch and hotels are launching weekly.
JLL says Liverpool Street station is one of the top five Crossrail stations in terms of new development opportunity.
When Crossrail opens in 2018, Farringdon will be one of Britain’s busiest transport hubs, with 140 trains/hour at peak times. An East–West Crossrail service will supplement an upgraded North–South Thameslink, meaning Farringdon will be supremely connected to the rest of London and also much of the South East.
More than 300k SF of new office space and 207k SF of mixed-use and retail has been given planning permission. A recent report by CBRE predicts that Farringdon will emerge as a central office area; it already has a following among technology, creative and media companies. Sixty London is a great example; all 206k SF was let to Amazon prior to its completion in summer 2013. And last week, Accenture splashed down £50M to acquire marketing services company Karmarama, which is housed at 20 Farringdon Road. The company extended its lease for five years.
The residential side is much more mixed. Recent analysis from Hamptons indicates that Crossrail’s projected impact on residential prices has caused potential sellers to delay. The result has been a collapse in the number of transactions. Sales volume within 500 meters of Farringdon station has fallen 15% from 2009, itself the lowest year on record since 1995. The impact in the short to medium term has been a degree of uplift in house prices. Post 2018, once Crossrail is operational, the number of sellers may increase as households look to realise house price gains. A substantial number of sellers coming to the market could certainly slow down what would otherwise be a steady growth in value in the area.
Bond Street Station
Bond Street station received a £300M bond for upgrades, but the station already has good underground links to the rest of London. The Jubilee and Central lines run through the station, while Bakerloo line at Oxford Circus and Piccadilly and Victoria Lines at Green Park are within walking distance. Crossrail’s impact is likely to be less noticeable at Bond Street than other places. However, Grosvenor is building a 63k SF commercial space above its Davies Street ticket hall. Galliard Homes is building The Chilterns, a luxury development of 44 apartments that is about a 12-minute walk away, and Great Portland Estates is redeveloping its nearby Hanover Gardens mixed-use scheme.