Crossrail is Europe’s largest construction project, stretching across 40 stations and due to complete by 2020. The line will bring an extra 1.5 million people within 45 minutes of central London, dramatically reducing commuting times to key areas such as Canary Wharf, Paddington and Liverpool Street. Areas that were relatively inaccessible will suddenly find that London is at their doorstep.
With each train able to carry 1,500 passengers, an estimated 200 million people will travel on Crossrail each year. The railway is expected to add an estimated £42bn to the economy of the UK, and many Crossrail locations are undergoing substantial regeneration projects.
Unsurprisingly, most property professionals believe it will have a significant impact on the property market, placing upward pressure on capital values and rent. In fact, for areas within 750m of Crossrail stations, JLL forecast capital growth from 33.6% (Bond Street) to 53.6 % (Whitechapel), and for rental growth, they forecast from 22.3% (Bond Street) up to 37.5% (Whitechapel). This is from the end of 2014 to the end of 2020.
The reason professional investors and analysts expect continued outperformance for years to come, despite Crossrail being public knowledge for some time now, is that 80% of the residential market is owner occupied. The majority are buying for their commute now, rather than in several years time – meaning that investment opportunity continues through to ‘when the trains start rolling in’.
JLL has published data predicting the effect of Crossrail on the areas set to benefit. Below you can see a selection of stations, and how much capital growth has been predicted for areas within 750m of them. For a full list of Crossrail stations and their predicted capital growth visit the JLL Crossrail tool.