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Stratford is the area of London where Olympic Games 2012 will be held and the Stratford City will be built.
Many analysts expect that Stratford property investment should achieve returns higher than average returns in London. This is because prices of properties in Stratford should increase not only due to general trend of property appreciation in London, but also due to a massive transformation of Stratford into a new European business centre with exceptional international and local transport links. For example, international property consultants King Sturge believe that house prices influenced by the Games will perform at least 5% better per annum than the market generally from now until 2012.
Transformation of Stratford includes creation of the Stratford City and the Olympic Park and is one of the largest urban regeneration projects in Europe.
The Olympic Park will create the largest park built in Europe for the last 150 years.
The Stratford City is the largest retail-led, mixed use urban regeneration project ever undertaken in the UK. It will include:
- 460,000 sq. m. of office space, including a cluster of towers of 50 and 30 floors, to attract major UK and European businesses.
- 150,000 sq. m. of retail and leisure space, including three large department stores, around 200 retail outlets, high street shops, restaurants, caf?s and bars, a large cinema complex, an arts and cultural centre and health and fitness clubs, as well as nightclubs and other facilities. The retail element will become the third most important retail centre in London after the West End and Knightsbridge shopping districts in the city centre.
- 120,000 square meters of hotel and conference space around the International Station.
- Over 13 hectares of squares, public gardens, parks, natural and ecological habitats, and water features, including the Cascades, a series of stepped lakes with quiet waterfalls between them with a total area of 13,500 square meters.
Stratford will benefit from huge investments in transport infrastructure which will make it ideally connected both internationally and locally, including to London's two main business centres: the City and Canary Wharf. The projects in the pipeline include:
- The Stratford International Eurostar terminal with direct trains to Paris and Brussels in around 2 hours (expected 2010).
- The Channel Tunnel Rail Link (high speed railway) and connection to Crossrail Line 1 (new railway connections under central London). From 2009, domestic trains can start using high speed line enabling Stratford commuters travel into central London in only 7 min.
- Two Docklands Light Railway (DLR) as well as extension planned to serve the Stratford International Eurostar station (expected 2010). The DLR already serves a large purpose in Stratford and provides an efficient route to Canary Wharf and The City of London.
- New and upgraded roads, bridges and streets will both stitch this part of London together and allow easy access to Stratford City. New Thames road bridge is planned along with rapid transit systems and improvements to the area's A-road network.
Stratford City will create around 35,000 new permanent jobs. Creation of the employment centre of this scale and ideal connections to London's main employment centres The City and Canary Wharf will drive demand for housing in Stratford and provide conditions for continues property price appreciation in the area.
Stratford has been branded by many leading property agents as the "best place to invest in Europe". International property consultants King Sturge commented in their recent Olympics Bulletin: "The development of Stratford as an international transport interchange coincides with the upgrading of the regional station, the extension of the DLR, the development of Stratford City and the development of the Olympic Park. Over the next five years Stratford will change almost beyond recognition and offers significant development and investment opportunities..."
In June 2007, in Property Magic spring/summer 2007 edition, one of the largest estate agents in Stratford Felicity J Lord indicated that property price growth for off plan apartments has been 34% during 18 months, and for 3 bed houses in the area - 30-40% in 18 months.
Stratford property investment: useful links
Off Plan Property in Stratford
Several off plan developments in the heart of Stratford on the boundary of the future Olympic Park.
Ideally positioned on Stratford High Street, just 10 min East to the City and 10 min North to Canary Wharf; fantastic travel connections.
Apartments overlooking Olympic Park with fantastic views over the river from a private balcony.
Exceptional capital and rental growth potential.
Stylishly finished apartments with designer kitchen and bathroom units.
10 year warranty from the National House-Building Council, the standard setting body and leading warranty and insurance provider for new homes in the UK.
To be completed in 2009 - 2010.
Prices: start at GBP 248,000 for 1 bed apartment with a private balcony.
10% down payment and 90% on completion of construction. During construction period, investors should benefit from the price growth of the full value of a property whereas they will have invested only 10% of the property's price. If we conservatively assume annual price growth at 7%, annual return on invested capital before completion of construction would be 7/10 = 70%. If an investor does not wish to sell a property before completion of construction and takes a mortgage for 75% of a property value, at 7% price growth his return on invested capital would be 7/30 = 23.3% (invested capital would consist of 25% of deposit plus 3-5% transaction cost; interest expense on 75% mortgage should normally be covered by rental income after costs). We assumed 7% annual price growth whereas in 2007-2012 we expect 10-12% annual price growth in Stratford.
Up to 85% loan to value mortgages for foreign nationals (subject to status).
Off plan property investment: advantages
Canary Wharf property investment
Greenwich property investment
UK and London property
UK prime property
UK property investment
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