District 2016) The area that was once an old

District

Price Rise (%)

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Clapton

7.3

Bow

6.3

Shoreditch

5.2

Stratford (Home of the Olympic Park)

14

 

The following table represents
the average percentage of price rise value in each district, according to (The Independant, 2012)

According to (Suren Thiru Lloyds TSB, 2012), this reflects
bigger interest from buyers and investors in these locations, and that interest
is mainly emanating from the Olympic event and the massive scale regeneration,
moslty improved by transport links integration.

Another accurate example where
capital values and overall return changed massively is the new Battersea 
Power Station. This Grade II listed building knew how to rise from
the dead and regain value, consumer confidence, and mostly, a huge overall
return for its investors:

  

Battersea Station Then vs Now.
Photographs: (Aspinall, n.d.) and (Battersea Power Station
Development, 2017),)

The project that was approved in
2010, cost its Malaysian backers approximately £9 billion, including the costs
of £211m due to the extension of the Northern Line and two new tube stations to
the area. (The Telegraph, 2016)

The area that was once an old
fashioned crumbling power station that closed in 1983 and left totally non
inhabitable, is currently being transformed into a massive 42 acres project,
with 1.25m sq ft of office space and 4,239 swanky new homes. It is one of the
biggest building sites in Europe, employing 3,000 construction workers. (The Guardian, 2017).

With investors getting more
interested, as Apple announced that it was going to move its 1,400 London staff
to a future new capus at BPS, (The Telegraph, 2016), the value of that
project is increasing rapidly and should score massive rates changes by its
completion in 2026. And whereas some critical opinions are starting to get
skeptical and pointing out the fact that the Battersea Power Station properties are struggling to be sold
lately, Adam Challis from JLL defended the projet as he stated that a
development that takes longer duration to be completed has to be accorded
immunity to the peaks and troughs of the property market cycle.

Number of newly build
sales/half year: Comparison between Nine Elms and Central London. Source: JLL (The Telegraph,
2016)

 

“There are several inflection points
in a regeneration scheme. As it stops being just a building site, demand and
pricing will pick up once again.” Says Jan Crosby, director at KPMG. (The Telegraph, 2016)

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