New government infrastructure spending on rail and tram links represents the most attractive real estate development opportunity over the next five years, according to investors.
63 per cent of property investors have rated updated rail and tram links as the most exciting development opportunities arising from the government’s £23 billion infrastructure scheme over the next five years, according to a new study commissioned by Amicus Property Finance. The ranking was based upon the development potential of sites adjacent to the improved facilities.
On an individual basis, 77 per cent of property developers ranked Crossrail and Crossrail 2 as the government backed projects with the most potential for residential schemes. Coming closely behind were other transport developments, including High Speed 2 at 51 per cent and Thameslink at 47 per cent. 14 per cent were of the opinion that superfast broadband had the highest potential.
Lagging behind the category of rail improvements, improved road transport links were found to be attractive to 55 per cent of investors, whilst local authority-sponsored urban regeneration schemes and airport upgrades were appealing to 48 per cent and 43 per cent respectively.
The research also revealed that Crossrail and Crossrail 2 were the highest ranked government infrastructure schemes for commercial property development.
Founder & Managing Director at Amicus Property Finance, Keith Aldridge, said: ‘The government’s decision to invest in building new infrastructure and upgrading existing assets provides a tremendous opportunity for residential and commercial property developers and we can expect this to continue for many years to come. The longer term impact of this infrastructure programme on regenerating existing residential communities and creating new ones cannot be underestimated, particularly when combined with the government’s renewed commitment to addressing the country’s housing gap. We have already seen growing demand among developers seeking short term finance to fund infrastructure-related residential and commercial schemes.’