Accumulate Capital reacts to the major uplift in investment value for beachfront developments
Perhaps one of the only silver linings of being a year in the life of the Covid-19 pandemic, is the ability to trace some of the economic and social patterns that we have seen emerge during in this time. The latest Property Market Index Rating for May 2021, indicates that many of the housing trends we witnessed in the first lockdown have merely been accelerated; a large part of this was the paradigmatic shift towards reverse urbanisation. Many families and professionals chose to relocate, lockdown presented an opportunity to reconnect with family and nature and we have seen popularity shift towards a favour for suburban and rural locations.
The principle finding of this report is the ever-increasing buyers’ movement from London property to coastal property. Data was collected from ten of the top twenty featured seaside locations from the 2020/2021 report to analyse the market trends and property prices over the past twelve months. The general results of this report showed an increased appetite for beachfront living with billions being invested in modern luxury developments highly sought after by London commuters. However, there were four outstanding leaders in terms of having both major investments and development projects currently in play.
The first was Ramsgate for its Royal Sands Ramsgate beachfront development, Manston airport redevelopment and preferable transport links to London due to the new high-speed railway station. The area is anticipated to receive a sum of £500 million in investment over the next three to five years according to the areas plans.
The second was Worthing for its Seafront Investment plan which will transform the beachfront and include Bayside beachfront development. The area is set to receive £100 million in investment from these projects.
The third was Brighton for The Marina Outer Harbour development partnership and the estimated £1 billion incoming for developments across this area and Hove in the next few years.
The fourth and final location was Southend for Clifton Shore, a deluxe £125 million seafront complex constructed on the old Esplanade site which is set to complete by the end of 2021.
As can be seen from the impressive financial projections for these areas, there is a clear trend towards embracing the comforts of a coastal lifestyle and pursuing a traditional London career through the proximity of these locations. Although, we may then wonder what the significance is for the emphasis on a beachfront property?
The report also answers this question by affirming that the average house with sea views or within a short walking distance of the sea is £346,184 more expensive than the average price paid for a home in the same location. This may be yet another consequence of the impact of living with such strict social restrictions, the desire to be enveloped in outdoor space appears to have accelerated the demand, and thus the price, and created a new prime location for property developers and planners alike. According to the report, this coastal living trend is set to grow in the next five to ten years due to the many permanent lifestyle changes that have take place over the past year or so. The report also states that following a survey of 500 senior decision makers, an astounding 73% expect businesses to downsize as a result of increased flexible working options and ensuring sustainable social requirements following the pandemic.
Our CEO, Paul Howells, responds to this survey by commenting that, “The days when a company would own or rent an office with a desk in it for each and every member of staff are coming to an end – in reality, this trend was already taking shape, but the coronavirus crisis has greatly accelerated it.”
Conclusively, this report outlines a significant opportunity for property developers and investors alike as coastal living has become the new most highly-sought after residential property in the UK.
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