Tag Archives: city
New development set to boost London’s Canary Wharf as a place to live
Canary Wharf in London is known as being one of Europe’s largest financial services employment clusters but it is also a leading prime London residential market with a new wave of development set to get underway. The new home building is accompanied by new infrastructure and amenities which will reinforce the area’s position as a prime residential address, according to a new report from international real estate Knight Frank. Already home to one of the busiest and most vibrant shopping malls in the city, as well as more than 300 shops, cafés, supermarkets, bars and restaurants, it says that Canary Wharf is already an attractive residential environment as well as a business centre. According Gráinne Gilmore, head of UK residential research at Knight Frank, the development planned for this area, which includes a new primary school, will augment its appeal to a wider demographic, attracting families as well as young professionals, and serve to further change perception away from ‘pied a terre’ to ‘home’. Meanwhile, the opening of Crossrail will enhance Canary Wharf’s connectivity. Property prices in Canary Wharf have risen by 27% since early 2013, comfortably outstripping the 10% growth seen across prime central London over the same time, according to Knight Frank’s index. Gilmore pointed out that such strong growth is partly underpinned by the improving UK economy, something which is also reflected in the commercial property market in Canary Wharf, with vacancy rates falling and upward pressure on office rents. The other effect at play on prices is the return of the ‘ripple effect’, with house price growth spreading outwards from central London, as it did in previous UK housing cycles. ‘However, despite this outperformance in price growth, average values are still significantly lower than those in more established prime residential neighbourhoods in West London,’ said Gilmore. She pointed out that Canary Wharf and its surrounds are also emerging as a hub for culture and entertainment as London’s ‘cultural centre of gravity’ is enhanced by activity in the East. There is a popular arts and events programme already hosted on the Canary Wharf Estate, with live music shows, outdoor dance performances, sporting events, open air theatre and exhibitions. There are 14 schemes of around 400 units or more already under construction or with full planning on the Canary Wharf Estate and nearby on the Isle of Dogs. Some of these schemes are in the very early stages of development and will take some years to deliver. Canary Wharf Group has already begun work on Canary Wharf Residential, a mixed-use scheme of over 3,000 new homes, including over 600 affordable units, a school and a medical centre. The scheme will expand the estate from 100 acres to 122 acres. Berkeley Homes has permission to build a residential tower on Marsh Wall, which, once complete, will be the UK’s tallest residential building, surpassing the 181 meter St George Wharf Tower in Vauxhall. Meanwhile Eco World-Ballymore is constructing twin residential towers at Wardian, just across the… Continue reading
Portugal’s golden visa scheme reduces real estate investment for certain locations
The Portuguese government has reduced the minimum required amount for its golden visa for those investing real estate from €500,000 to €350,000 for certain locations. But the new lower amount only applies to property located in districts designated for urban renewal and is designed to reinvigorate interest in the popular visa scheme and provide a boost to Lisbon's regeneration programme. The scheme is also getting a boost after it was suspended earlier this year as a result of a legal void created by a piece of new legislation which did not address certain aspects of the existing golden visa laws. It is one of several so called golden visa schemes that allows property investors from outside of the European Union to get a visa to live in the country by investing in real estate. Others are available in Spain and Greece. ‘It was already the most popular scheme of its kind in Europe, but the government wants to cast the net wider. Spain and Greece launched similar visa systems in 2013 and have taken some of the market share, so the authorities are using properties in regeneration areas across cities like Lisbon to inject more interest in the scheme,’ said Nicholas Leach at Athena Advisors. According to the latest figures from the Serviço de Estrangeiros e Fronteiras (SEF) 2014 was a record year for Portugal with 1,526 successful golden visa applicants in total. However this year there has been less, with only 398 successful applicants in the first six months of 2015. ‘After the initial surge of investment into the scheme, there was bound to be a let up in demand. The demand of immigration incentives peaks and troughs, and this is why the government has shaken up the terms, to try and keep the rhythm going,’ explained Leach. Between its launch in October 2012 and the end of June 2015 the Portuguese Golden Visa scheme attracted €1.47 billion of investment, of which €1.33 billion or 90% was through the purchase of real estate, accounting for 2,289 golden visas. By comparison, the Spanish equivalent of the scheme generated around €700 million, granting 530 foreign buyers with a visa between its launch in September 2013 and March 2015. According to Leach some golden visa investors have looked to the Algarve and Silver Coast north of Lisbon, but Lisbon's city centre has been the main target due to the value and potential uplift. ‘Prime properties in Lisbon are a third of the price of their London and Paris equivalents, and if you look towards central regeneration areas like Mouraria there is even more value,’ added Leach. Following the recession of 2008, much of Lisbon's city centre fell into disrepair as both businesses and people left the city. Developers have targeted these areas over the last few years, renovating historic properties and even entire districts, upgrading real estate to international standards, thus enticing golden visa investors. Most of the city centre's sought after districts fall within the boundaries… Continue reading
New residential rent controls take effect in Paris
The rental market in Paris is now subject to new rent control regulations covering all new residential leases and those that are up for renewal. The law seeks to cap rent increases from one lease to the next in the country’s largest cities as part of sweeping housing reforms promised by French President Francois Hollande during his election campaign. The policy is likely to be popular among tenants in the city who have seen home rents rise by 42% in the last 10 years, although it has been criticised by estate agents and landlords. Paris is the first city to see the law being enforced and it is likely to be rolled out in Lyon, Bordeaux, Marseille, Lille, Grenoble and other big cities in the coming months. The law allows the prefecture of each city to establish a maximum rents measured in euros per square meter based on when the property was built and where it is located. The levels must be no more than 20% above or 30% below the median rental price for the area. There is likely to be winners and losers. It is estimated that rents on around 60,000 properties are likely to come down and those of 25,000 to go up. The biggest decreases are likely to be for studios and one bedroom apartments, according to agents. The National Federation of Estate Professionals (FNAIM) said the law will hold back the rental housing market and put off buy to let investors. It is considering legal action and already agents in Lille have blocked the law being implemented by withholding housing and rent data. Continue reading
