The Canary Wharf Rental Market Strengthens as Confidence Swells

2009-11-18 18:04:27 - The past month has seen further strengthening of the residential rental market in Canary Wharf, with demand increasing, particularly for newly built stock within walking distance of the financial centre.

In the early part of 2009 the E14 market – and Canary Wharf in particular – was still suffering from the impact of uncertainty in the financial services sector in the wake of a wave of redundancy announcements. This translated to relatively low numbers of tenant applicants. However, since then, the tide has turned.

Mirroring the national and London-wide picture, demand
for property within walking distance of Canary Wharf has increased; particularly for brand new developments that are coming to the rental market for the first time.

During the spring/summer, Canary Wharf has seen apartments completing at Ability Place (formerly known as The Icon) and the long awaited Pan Peninsula. Young Group’s estate agency, Young London, has rented a number of apartments within these developments, recently signing, referencing and moving a tenant into a 2 bedroom apartment in Pan Peninsula within just 10 days of being instructed on the property. There is a good demand for these new developments.

Also of note is that the completion of these two major developments failed to satisfy the resurgence in demand for good quality apartments within walking distance of the financial centre, and demand continues to grow. Corporate clients are returning to the market and tenants are more confident about their job prospects, ready to commit to new tenancies. Recent Bank results are adding support to this sentiment.
Tenants are no longer able to bargain hard for property. Neil Young, CEO of Young Group, comments; “Back in early 2009 the relatively low number of tenants who were looking to rent in Canary Wharf were in a strong position to negotiate. But the situation has reversed dramatically. Tenants have seen rents in the area stabilise and are now keen to renew or move into the area before rents rise.

“Like our prospective tenants, we’re excited by rental opportunities that The Landmark presents. The development’s position is second to none and it has spectacular views. Add to this the cache of The Landmark being the newest luxury development on the block and we’re confident that rental demand will be high.”