Victoria Bajela, head of London offices at EGi Research, gives her view from Cannes
MIPIM 2016: “Central London needs outer London like it never needed outer London before. It’s all changing.” Stark words from Jo Negrini, executive director of Place, Croydon council, at the first session at the London stand at MIPIM on day one.
Never one to mince her words, Negrini – an outer borough champion – would say that wouldn’t she, but the core principal holds. Demand and interest are growing in locations that central office agents would never have in their AtoZ. We are now talking about outer London in the same way we would have talked about Stratford a few years ago.
“Central London is over reaching, people are looking for places to grow,” added Negrini.
With record low availability, just 5% across central London, and rising rents in core locations up by more than 23% since 2008, those looking for more cost-effective space have only one way to go, and that is out.
Three developments really illustrate this changing face: King’s Cross, improvements across South Bank and Nine Elms. Eight years ago King’s Cross was considered outer London.
As Sir Edward Lister, London’s deputy mayor, said: “Let nobody say there is not land for development the real question is making what is available viable”
He was talking about brownfield land but for that to happen outer London will have to increase its importance.
• London Calling: Click here for the numbers behind this story from our London Residential Research team.
