Our 2018 Property Predictions for Shoreditch
In 2016, analysts predicted that the Shoreditch property “gold rush” was over. They thought the region would suffer the same fate as Mayfair, with stalling property prices and ultra-high asking prices pushing prospective buyers away.
The following year showed how wrong they were. Shoreditch remained one of London’s most popular property hotspots, with increased price growth, higher returns and a steady stream of buyers and tenants. Interestingly, landlords became increasingly innovative in finding solutions for intense demand, making perfectly good homes out of shipping crates and all sorts of other things.
2018 can only look like more room for growth. In this article we’ll give you a breakdown of what we think will be the main factors to affect the property market in Shoreditch.
The continuing influx of new businesses will drive residential property construction
2018 will see more residential developments brought into the area to cope with the rich influx of new workers over the last two years. There isn’t a great deal of space in Shoreditch, so developers tend to look for creative solutions to the increasing demand and they are likely to develop every scrap of land they can get their hands on. There are already several large development projects under construction, including Principal Tower, One Crown Place and Long & Waterson.
Unlike in previous years, when Shoreditch property was snapped up by buy-to-let investors, the tech boom will likely mean more city buyers looking to move to the area. With property prices seen as highly competitive considering the prestige of the area, we fully expect Shoreditch to see a fresh surge of investment.
Shoreditch will continue its reign as the centre of the tech boom, driving demand for commercial property
Commercial property has the potential to explode in Shoreditch in 2018. The area is cementing its position as the capital’s technology hub, with 3,200 technology firms per square kilometre (the London average is 58). Expect more digital companies to flock to Shoreditch in the coming months and years.
Creating a technology hub in Shoreditch will put a premium on commercial office space. By 2020, commercial landlords can expect revenue to increase as demand rises, generating extra yields for every square foot of space. Shoreditch is expected to show the strongest rental growth anywhere in London between 2018 and 2020.
Shoreditch may also be one of the few areas unaffected by the outcome of Brexit. Technology companies have much more geographical freedom than other industries. While Brexit could cause an exodus of other sectors from the capital, Shoreditch’s technology sector looks set to remain a haven.
Crossrail will start to push Shoreditch property prices up
Construction on Crossrail is well underway and, once finished, it will have a profound effect on the London property market. Shoreditch property is likely to be cashing in on its proximity to the new line, particularly Liverpool Street Crossrail station. Both sales and rental prices should receive a bump once Crossrail is fully operational in 2019, but expect the uptick to begin throughout 2018.
There’s never been a better time to invest in Shoreditch property, and there are signs that pockets of the residential market will generate significant growth in 2018. Is the Shoreditch “gold rush” over? Absolutely not. Unlike Mayfair, the Shoreditch property market has proven to be much more robust. In fact, there’s no sign of it letting up.
Sources: http://www.cityam.com/274135/focus-shoreditch-up-and-coming-no-more-its-now-one-most
Image courtesy of pixabay
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