London Investment Property Hotspots

With substantial regeneration underway across London boroughs in 2020, savvy property buyers and investors should keep a watchful eye on areas and neighbourhoods which benefit the most. Chase Evans local property experts advise focusing on the following specific London areas which are quickly transforming into thriving residential and commercial property investment hotspots.

Tower Hamlets

The extensive area of Tower Hamlets has experienced a large-scale regeneration in the last decade ensuring impressive improvements for the benefit of its residents and businesses. Tower Hamlets has a diverse housing stock appealing to many buyers and investors including new family homes, contemporary urban apartments, luxury riverside and waterside property in Canary Wharf as well as period conversions in the historic Aldgate, Whitechapel and Shoreditch.  

The most exciting developments emerging west of Limehouse are London Dock in Wapping (1,800 high quality new homes upon completion as well as an impressive 180,000 sq. ft. of commercial space) and Silk District (approx. 450 apartments and over 35,000 sq. ft. commercial space) in Whitechapel. Several tower developments will complete on the Isle of Dogs this year, including Wardian, Landmark Pinnacle and The Madison.

Tower Hamlets is seen as a top London location for investors, tenants and home buyers due to increased rental demand from the bulging east London and Canary Wharf workforce. The potential for extensive growth is substantial especially with the completion of the highly anticipated Crossrail (stations in Canary Wharf & Whitechapel) within the next couple of years. 

CLICK HERE  to see properties we list for sale in Canary Wharf.

Average Rental Yield* for: E1: 3.1%  E3: 3.7%  E14: 3.5%  E16: 4.0%  

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Greenwich

In February 2019, the Royal Borough of Greenwich progressed with Thamesmead Waterfront, an eight billion pound regeneration to undergo on the banks of the River Thames, which has a potential to bring over 10,000 new homes to the district.

Closer to the historic Greenwich are the Royal Arsenal Riverside development in Woolwich (delivering nearly 5,000 new homes as well as retail and leisure facility space) and the entirely new neighbourhood being completed on Greenwich Peninsula, both of which further increase the borough’s property investment appeal.

Two new Crossrail (Elizabeth line) stations are being built in Greenwich:  in Woolwich (near Royal Arsenal Riverside) and in Abbey Wood. The Crossrail will provide fast connections to Canary Wharf, Central London and Heathrow with 12 trains per hour.

CLICK HERE to see properties we list for sale in Greenwich.

Average Rental Yield* for SE10: 3.7%  SE18: 4.0%

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Barking & Dagenham

Providing excellent return on investment with high rental yields (approx. 5.4%), Barking & Dagenham is a key East London property hotspot. Plans are in place to build more than 50,000 homes and provide 20,000 jobs over the span of two decades. Considering that Barking & Dagenham property and land prices are amongst the lowest in London, this large London suburb could be a highly beneficial territory for investors and buyers alike.

Recently, the borough has moved closer to grant a planning permission to transform Barking Abbey Retail Park into a new £350m (GDV) riverside urban-village. ‘Abbey Quays’ will provide 1,089 new homes of mixed tenure and 22,281 sq. ft. of commercial and leisure space. Also, the demolition of the Gascoigne Estate has started, making way to the redeveloping of the 1960’s estate into a modern community with additional 201 new homes by spring 2022.

CLICK HERE to see properties we list for sale in Barking.

Average Rental Yield * for  IG11: 5.7%

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Canning Town and Custom House

Custom house and Canning down are currently in the centre of wide regeneration plans set by Newham Council aiming to change the area significantly with the construction of new family homes, two new town centres and investment into the current housing stock.

The regeneration is almost finished on London City Island, a striking development by EcoWorld/ Ballymore where the River Lea joins the Thames, and is progressing well at the Hallsville Quarter, a brand new neighbourhood at the heart of a £3.7 billon transformation of Canning Town. Custom House’s new Crossrail station is ready for train services expected to run soon. 

CLICK HERE to see properties we list in Canning Town.

Average Rental Yield* for  E16: 4.0%

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Elephant and Castle

Southwark Council is leading a major Elephant and Castle regeneration programme which aims to ‘create a new exciting destination for London over the next 15 years’. It’s set to include a new pedestrianised town centre, a market square and 5,000 new homes, as well as the creation of up to 450,000 sq. ft. of retail space, an integrated public transport hub and new green spaces.

Additionally, plans to redevelop the Elephant and Castle shopping centre have recently been approved meaning that approx. 1,000 new homes and a new university campus for London College of Communications will be built on its location.

CLICK HERE to see properties we list for sale in Elephant and Castle.

Average Rental Yield* for  SE17: 4.0%  SE1: 2.8%

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*Average Rental Yield data as on 07/02/2020 sourced from PropertyData

For the most recent data check the website.