Canary Wharf: The Expanding Property Investment Hotspot of East London
Traditionally, East London has been predominantly an industrial part of the capital. It’s previously been synonymous with abandoned warehouses and derelict docks. However, in recent decades, this part of London has undergone dramatic changes with transformative regeneration. And the focus of the capital as a whole is shifting to the east.
In East London, there are numerous headquarters and offices of leading national and international companies, including JP Morgan, KPMG, Thomson Reuters and EY. And on top of that, there is a growing number of cultural and lifestyle offerings. Collectively, this is causing East London to become increasingly sought after for living, working and investing in.
With the continued growth and development slated for the area, there are rafts of property investment opportunities within East London, and particularly Canary Wharf.
Reasons to invest in Canary Wharf
Located on the Isle of Dogs in the borough of Tower Hamlets, Canary Wharf has become an increasingly appealing place for both property investors and tenants. The neighbourhood is home to great transport links, a bustling business district and a growing selection of shops and restaurants.
With such strong prospects for the future, here are some of the top reasons to invest in property in Canary Wharf.
Strong demand and rental yields
As London’s second most important business district, Canary Wharf has a surging number of job opportunities. There are more than 100,000 people employed there, and this is forecast to double over the next 10 years.
There will even be up to 60,000 new jobs created at the Royal Docks and ABP Enterprise Zone, which is a commercial, leisure and retail district offering opportunities for global businesses and creative entrepreneurs.
With this continued growth in employment prospects, rental demand is expected to surge even further, especially among professionals who want to be able to walk to work. Because of this, rental yields are forecast to be strong for property investors in the area.
According to recent research by Chestertons, the average gross rental yield was 3.5% in Canary Wharf between January and March this year. This is tied for the fourth best rental yield in London.
Centre of regeneration
As a centre of prolific regeneration, Canary Wharf has undergone a dramatic transformation. In the past few decades, there have been major infrastructure improvements, including Crossrail and DLR, business expansions and new retail developments. Canary Wharf itself is even expanding further to the east.
Additionally, the Royal Docks is set to undergo a multi-billion transformation, turning it into London’s third financial business district after the City and Canary Wharf. With more regeneration and development coming to this neighbourhood of the capital, it’s making it an even more appealing area.
Capital growth prospects
With the regeneration projects and development slated for the area, Canary Wharf has strong capital growth prospects. Demand isn’t showing signs of slowing down in this part of East London, which could put upwards pressure on house prices there and in the surrounding neighbourhoods in the coming years.
Previously an area without restaurants and shops, Canary Wharf has an increasing number of world-class retail stores and eateries opening. This includes The Breakfast Club, Big Easy, street food vans on South Quay Street and four shopping malls with luxurious brands, such as Tiffany & Co. and Montblanc, and high street names like Zara.
The arts and entertainment scenes are growing as well with an Everyman Cinema and a number of parks and squares used for events and live performances. Canary Wharf is even home to one of the UK’s most sizable collections of public art with Art on the Estate and the largest health club in Europe, boosting the neighbourhood’s lifestyle offerings. This is making it a particularly attractive location for professionals who are putting more emphasis on new work-life balances and lifestyle changes.
A spotlight on Orchard Wharf
Located only seven minutes from the heart of Canary Wharf, the upcoming property development Orchard Wharf is well placed to maximise on the area’s expansion to the east as the capital’s most prolific new growth zone.
More than 300,000 people commute to and work in the city less than 15 minutes from Orchard Wharf. The development is only a few minutes’ walk away from the nearest DLR, Tube and Crossrail stations. It’s within close proximity to the new English National Ballet studios on City Island and the emerging arts cluster at Trinity Buoy Wharf.
The landmark development Orchard Wharf will feature four-tiered roof gardens and landscaped grounds, so residents can take advantage of the riverside location. Expected to complete in Q1 2022, this exciting development will have a mix of brand new one, two and three-bedroom high spec apartments perfect for property investors.
1, 2 and 3 bedroom apartments located just 7 minutes from Canary Wharf, Crossrail and the Royal Docks.
• All apartments with balcony, terrace or private ground level exterior space
• Residents’ concierge, private parking, lounge and communal gardens
• 5 minute walk to the DLR station, 9 minutes by DLR to London City Airport
• Estimated completion Q1 2022