So with the first quarter of the 2012 already behind us how is the Canary Wharf property market shaping up?
The excitement and the anticipation of the Olympics as well as the concern of how it might well affect those of us living and working in the area has certainly got everyone talking. Road works are abundant particularly evident at Westferry Circus as the government prepares our city for this historical event. Along with all the buzz and excitement we have seen a real positive shift throughout the property market in general.
Last year we saw rents surge and that continued into early 2012 with the prices now levelling out rather than continuing to climb to the relief of tenants. Most rents in Canary Wharf being at an all-time high with no glancing back to the troubled times in 2008 when for the first times tenants held the reigns and continued to negotiate their rents down during that fragile period.
With the rental market now stabilising and exceeding expectations of rental yeilds, the spotlight has now turned to sales. We are now comfortably back to pre-2007 prices and in some of the more sought after developments even exceeding those prices during the height of that crazy market. Good news for sellers, who for the first time in years are looking at selling for more than they purchased for in 2007. Buyers are out in force again with multiple offers on property being the norm once again.
All good signs of a healthier buoyant market we have all been longing for. With the bank of England rates still being held, landlords and homeowners are still benefiting from low mortgages. Lenders are also keen to entice first time buyers onto the property ladder with their lower deposits and fixed rate mortgages too.
One of the biggest signs I have noticed of recovery is the notable amount of new developments that are now being constructed and marketed. You only need to pick up a copy of any property related newspaper or magazine to once again see an array of developers advertising their brand new developments. The City Pride site that has been broadcast for years as acquired for new development, but lying dormant with the pub continuing to trade has closed its doors for business and put up their hoardings this week to start work on this prime residential site, for me an undeniable sign that things are on the upturn.
Brace yourselves everyone, all indications are looking like it’s going to be a very good year!