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Despite a slow start due to the quantum of stock last year, Canary Wharf’s transition from a commercial district to a mixed use environment continues apace as the local property market flourishes, according to JLL.
 
The strong demand has forced average pricing in Canary Wharf up to around £750 per square foot, with some of the best units at new schemes pushing towards £1,100 per square foot. Annual price growth has also accelerated to 14.4% (by the end of 2013), notably higher than the 12.1% Central London average.
 
Tony Usher, Associate Director of Residential for the JLL Canary Wharf office, comments: “Prices are soaring around The Wharf. The second-hand market is as active now as it’s been since the credit crisis. At many developments, prices are 15-20% higher than a year ago, which is staggering. It’s not just the sales market that’s motoring; the rentals market is flourishing, too, which is encouraging news for both overseas and domestic investors." 
 
“The dynamics of the Canary Wharf housing market have changed quite a bit over the past few years. Importantly, it’s no longer Wharf workers only. We have seen many people move here from West London or South London, attracted by the bright, new build product on offer, as well as the lively leisure offerings and great connectivity. Canary Wharf itself has great shopping, restaurants, gyms and so on, but close by are Westfield Stratford and escape routes like City airport. People are happy to commute into the City and the West End from here, and it will get even easier once Crossrail arrives. As such, people love to buy and rent here; we’re never short on demand, which adds to Canary Wharf’s appeal to investors. They are happy with returns and rarely see voids, which leads many to come back to buy more stock. Domestic investors are back in the market, too, and are taking advantage of the resurgence of Canary Wharf following several lacklustre years and with one eye on the boost from Crossrail,” he added.
 
The new build property market in Canary Wharf is particularly thriving. For example, from 2011 – 2012 there were only 600 sales, but in 2013 alone over a 1,000 units were sold. The biggest selling schemes last year were Baltimore Tower by Galliard Homes, located close to South Quay DLR station and designed by world renowned architects Skidmore, Owings & Merrill, where JLL sold over 330 units. Lincoln Plaza, central to the Millharbour regeneration project and featuring breathtaking views from the 31 story tower and unusual features such as a 22nd floor 4-storey winter garden, where there were approximately 250 sales. In addition, there were also over 100 purchases at both the Providence Tower and Horizons. Such has been the success of these schemes; there are now only 77 new units on the market in the whole of Canary Wharf. 
 
Looking at 2014 and ahead, the surging residential development activity continues with over 1,200 units currently under construction, approximately 360 of which started during the second half of 2013. In addition, two tall tower schemes, The Hertsmere and Landmark North, are likely to pass through planning this year with The Hertsmere being the tallest residential building in the UK once completed.

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