Crossrail Property Impact Study

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This study looks at Crossrail, the £14.8bn project currently under construction to build a new rapid east–west rail connection traversing London, and its forecast impact on property values and investment along the route.

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Description

Study conducted in 2012 by GVA.

Background

Crossrail is among the most significant infrastructure projects ever undertaken in the UK. From improving journey times across London, to easing congestion and offering better connections, Crossrail will change the way people travel around the capital.

Building the new railway involves constructing 21km of twin-bore tunnels, constructing eight new stations in central London and Docklands and upgrading many existing stations. Stretching from Maidenhead and Heathrow in the west, across to Shenfield and Abbey Wood in the east, the new railway covers 118 km of track. Crossrail services are due to commence in 2018.

Crossrail’s property impact

Key findings of this study covering the period 2012-2021 are:

  • Crossrail is already having an impact on investment decisions. At many locations Crossrail will be influential in supporting and accelerating new development.
  • Crossrail could help create additional residential and commercial value of as much as £5.5bn along the route between 2012 and 2021.
  • Crossrail will support the delivery of more than 57,000 new homes and 3.25 million square metres of commercial office space that have been identified for development within 1 kilometre of stations along the route.
  • Commercial office values around Crossrail stations in central London will increase due to Crossrail over the next decade, with an uplift of 10 per cent in capital value above a rising baseline projection.
  • There will be significant increases in residential capital values immediately around stations in central London of some 25 per cent and in the suburbs of some 20 per cent (again above the rising baseline projection in the period).
  • Urban realm improvements and the development of new schemes above Crossrail stations will act as a highly visible and beneficial driver for further development activity, the intensification of use and in several areas, such as Farringdon, significant change. Crossrail will have a transformative effect on the property market and development activity over time.

Land Securities, one of the UK’s leading property developers considers that “Crossrail will have a positive effect in the long-term. It has already changed our views on development investment and property acquisitions in areas along the route. Crossrail is already referred to and used within marketing material and in occupier queries. It will reinforce London as a place to invest, which has got be good.”