Source : Gulf News
It was announced recently that the Hyperloop One, when complete in 2021, will transport goods and people from Dubai to Abu Dhabi in 12 minutes. The ultra-fast levitating capsule will travel at 1,200km per hour and is expected to have a positive impact on the lives of people living and working in the two emirates.
A city’s transport links massively effect house prices and rental yields. This can clearly be seen across the globe. In the UK recently, the Crossrail, which will give 1.5 million more people access to central London within 45 minutes, is driving price growth across London.
For years now, housing supply in London has struggled to keep up with demand, creating an acute imbalance in the real estate market and driving up prices. Over 49,000 new homes are required per year for the next two decades and this target is not being met. The arrival of Crossrail, Europe’s largest construction project, is further increasing demand and driving price growth as it transforms rail transport in London, cutting journey times across the city, while having a significant impact on property prices and investment. Woolwich, in the borough of Greenwich, which will boast its own Crossrail station, is set to be one of the greatest beneficiaries, making it one of the best locations to invest in London.
The Crossrail effect
Woolwich will benefit from The Crossrail effect in terms of both investment opportunities and price growth. Average residential prices have already risen by 69.8 per cent around Woolwich station since the announcement of the Crossrail in 2010 and are expected to rise by 15 per cent in the next five years. Further growth is expected as the opening of Woolwich Crossrail station in December 2018 approaches and investment in the area continues.
The average house price around the Crossrail station in Woolwich has risen by 69.8 per cent
What’s more, Crossrail in Woolwich is part of a new waterfront masterplan — an area that has undergone a dramatic transformation. The Royal Arsenal Riverside development is a £12 billion (Dh58.67) mixed-use scheme set on an 88-acre brownfield site with almost 1km of riverside frontage. It will include a prominent cultural quarter with parks, retail, food and beverage outlets and a performing arts venue.
Woolwich’s demographic trends
Thanks to its current affordability and good transport links, Woolwich is popular among young professionals who work in the city and central London. The population as of the 2011 census was 49.1 per cent aged 20-44 with 39.4 per cent employed full-time, 9.9 per cent employed part-time and 8.9 per cent self-employed.
Woolwich’s rental market
Woolwich’s rental market is strong, thanks in particular to its efficient transport links. It is currently on the Docklands Light Rail, mainline National Rail and offers Thames Clipper ferry services. When Crossrail starts its service this year there will be no other place beyond Zone 1 in South London that is as well connected. Crossrail will significantly reduce journey times, taking commuters into Canary Wharf in just eight minutes, Liverpool Street in 14 minutes and Bond Street in 22 minutes. According to Knight Frank, for 71 per cent of Londoners, transport links are the most important factor when choosing a rental property.
The borough of Greenwich currently offers London’s highest yields for landlords and some of the most affordable monthly rents for tenants. Woolwich rental growth forecast scores well with expected average rental growth of 21 per cent between 2018 and 2020.
Hyperloop One effect
It is expected that once the UAE Hyperloop One starts operating, it will evidently create positive results on the UAE real estate. Properties accessible to the Hyperloop will be more attractive to investors even from far away areas. For instance, Dubai Real Estate will attract clients from Abu Dhabi as the distance between the two emirates will be now covered in only 12 minutes. The same will be true with Abu Dhabi properties for Dubai investors, allowing diversified clients for different real estate properties.