By +Eric Jafari
Construction activity in London is
moving out of the suburbs, according to a recent survey.
The Drivers Jonas Deloitte London Residential Crane Survey, which
monitors every active residential scheme of more than 50 units
across Greater London, revealed that a higher proportion of
construction is now taking place in the city centre.
This is good news for property investors, with rental demand
continuing to be highest in central locations. However, thus far
supply has been unable to keep pace, despite the sector remaining
resilient during 2012, with 37,304 units now under construction
across 236 schemes. Drivers Jonas Deloitte partner and head of
research Anthony Duggan told The Construction Index: "While new
construction starts fell to very low levels in the last survey, the
number of new units starting has rebounded and increased by 50 per
cent over the last six months."
Activity has primarily centred around Tower Hamlets, which
accounted for 23 per cent of new starts. This has been driven by
early stage work at Galliard's Lincoln Plaza and developments from
housing associations to the east of the city. However, there are
eight boroughs in London that have seen no activity at all.
"We have seen a noticeable shift in construction activity to the
inner boroughs at the expense of the outer boroughs," Mr Duggan
explained to the news provider. "Of the top ten most active
boroughs, only two are in outer London, whilst central London now
accounts for 34 per cent of residential construction in London
compared to just 20 per cent 18 months ago."
This shows that despite space constraints, developers are eager
to capitalise on central London
demand, which is also being fuelled by European and Far Eastern
investors. Flats are still proving to be the most popular units,
but people are increasingly demanding larger properties. Two and
three-bed flats now comprise 68 per cent of units.
Nevertheless, Mr Duggan illustrated that this increase in uptake
is not akin to a dangerous boom, with projected completions over
the next two years likely to fall short of the accepted 30,000-plus
units required each year.
15 January 2013
London Residential Property Construction,London Property Demand