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Investing in properties in Docklands, E16 vs Canary Wharf, E14

E14 – Canary Wharf and the Isle of Dogs – has transformed into an area that is as much residential as commercially focused. Hundreds of new shops, restaurants, cinemas and gyms have made the area, once described as “dead at the weekend,” a highly desirable place to live. However, the astonishing amount of development that is still ongoing has meant vast oversupply in the property market here, and consequently has put downward pressure on resale prices.

Next door in E16, the heart of London’s historic docklands, a similar level of development is beginning to rear its head. Royal Wharf, Waterside Park and Canary Gateway, for example, offer comparable specifications and amenities to Canary Wharf’s premium residential offerings, but brand new or off plan command values of around 10-15% less than their E14 counterparts. A typical two-bedroom apartment, depending on the view and specific building, ranges from just over £500,000 to around £700,000, whereas in Canary Wharf a similar property would start at closer to £600,000 and rise to a considerably higher amount.

E16, as a result of investment predominantly from the Far East, is growing at a phenomenal rate and the amenities and infrastructure in the area will soon rival more central locations – for example, there are 15 DLR stations in the E16 postcode alone, as well as the Jubilee line at Canning Town. In the next decade, we will have a much clearer picture of the modern-day docklands and the lifestyle the area will afford.

It’s worth noting, however, that although brand new and off-plan properties in Canary Wharf command a premium, the aforementioned oversupply has softened the value of resale properties here, and it’s not uncommon to find good quality two-bedroom flats in the £450 - 500,000 range. With vendors and especially buy-to-let investors battling taxation and legislative changes, it’s our recommendation that if you can, you should retain your existing E14 property assets. If you’re a new entrant to the E14 market, you can find some absolute bargains right now.

The same is unlikely to happen at the same scale in E16 in years to come, given that the impending Brexit and other political and economic uncertainty are influencing the market so much right now, so we view the majority of these new developments as worthwhile investments right now, too.
10/10/18

Investing in properties in Docklands, E16 vs Canary Wharf, E14

by Tom Crowe
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