Nine Elms regeneration creates housing bargains in prime Central London
House price discounts up to 40 percent for Thames riverside property.
The estimated £13 billion (US$15.9 billion) redevelopment of Central London's Nine Elms district continues to prove critics wrong. Strong growth is reported in relation to high-end property values, and sales volumes have doubled year-on-year.
Even lower-end property values have remained remarkably steady over the period, according to global real estate investment group Jones Lang LaSalle. This is despite weakened market conditions caused by increased stamp duty, concerns over Brexit and global economic and political changes.
With Embassy Gardens already welcoming its first residents and Circus West opening this summer next to the former Battersea Power Station, Central London's newest neighborhood is now open for business.
For investors, Nine Elms offers prime Zone 1 property that is riverside of the Thames and significantly less expensive compared to surrounding districts – as much as 40 percent below current levels for Chelsea on the north side.
For locals, the last large-scale industrial estate in Central London will be transformed into a mixed-use area by 2025, with more than 20,000 new homes, a 30-acre park, schools and other public facilities.
The development will also create 3.2 million square feet of office space, 2.3 million square feet of retail space and 1,600 new hotel rooms. Construction has already started on two new underground stations on the Northern Line that will connect the new district to the rest of the capital.
A long-term vision
Former London mayor Boris Johnson called Nine Elms: “The last and greatest single prospect for regeneration in Central London.”
The project is certainly an ambitious one, not least for its redevelopment of the former Battersea Power Station. This Grade II-listed building is an iconic London landmark, but the cost of repairing, converting and decontaminating the 13-acre site has deterred developers for over 30 years – until now.
With the full scale of the redevelopment expected to take at least two decades, Nine Elms will face the full force of London's residential market cycles. However, this early success even in a time of great uncertainty has reassured developers and investors of its resilience.
Adam Challis, head of residential research for JLL UK, is confident the arrival of prestigious brands like Apple will set firm foundations to support the district's long-term success.
“The commitment by Apple to BPS [Battersea Power Station] will drive employment and underwrite the shops, bars and restaurants that will form part of this new community,” Challis says.
“The US Embassy begins occupancy in the next few months in advance of its July 4th opening, and finally the construction work for the new London Underground extension is well underway, ensuring the community will have fast transport connections to the rest of Central London.”
The Residence: luxury living in London's newest neighbourhood
Construction is now complete on an exciting new residential development in the heart of Nine Elms.
Spanning three buildings, The Residence has been developed by Bellway and GRID architects to offer the latest in contemporary design and luxury amenities – from the spa-style bathrooms to the on-site gym, cinema, private function room and podium gardens.
The Residence comprises 320 luxury apartments that make the most of their prestigious riverside location with views overlooking the Thames, the new Nine Elms park and the US Embassy. Once complete, the new Nine Elms tube station on the London Underground will connect residents to the city centre in a mere 12 minutes.
Standard and superior one-, two-, three- and four-bedroom apartments are available for purchase now.