Tuesday, May 5, 2015

Branson on London issue 69 May 2015

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The London market is in a period where transport improvements are a key factor in growth and the skyline is changing dramatically as buildings soar upwards.

Surely there must be a question mark over whether all the 263 towers either planned or under construction will be built. There may be cheerleaders, such as Boris Johnson, Mayor of London, who propagate eternal growth but will the climate of opinion continue to favour it? Because that means a constant and massive investment in new infrastructure. Crossrail will soon be completed and already developers are scrambling for sites near the stations. Thameslink will also soon be finished and with it, ease of travel across London. To cope, London Bridge is being massively improved.

A new underground line to the rebuilt Battersea Power Station will follow and further crossings of the River Thames, such as the Garden Bridge which is getting close to its target funding of £170 million.

On the horizon, and backed by Johnson and George Osborne in the dying days of this government, is Crossrail 2 from the south west to the north west of the capital.

Meanwhile, the market remains healthy with rents rising, notably in the Southbank, Midtown and West End, and foreign investors pour money in and embark on new developments.

It would be a mistake to predict how long the market will continue in this vein, but with London growing so strongly and the economy improving it would be a brave man that put a date on it.

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