Investing in an area that is being redeveloped is a wise investment. Discover which major cities are undergoing multi-million pound investment projects right now.
For investors and homebuyers, regeneration areas can be a good bet as the housing market slows.
According to Seven Capital, urban regeneration often leads to rising housing demand, which attracts new businesses in turn.
It is through developments such as train stations, shopping malls, leisure facilities, and mixed-use commercial spaces that new residents are attracted to the area.
“This effect can then ripple outwards, attracting new businesses which support a higher-paid workforce and thus, increase demand for residential living nearby,” the group said.
As a result of above-average regeneration, Seven Capital has identified five areas that will not only become desirable places to live and work, but also raise property values.
Derby City Centre Masterplan is an ambitious regeneration initiative that will deliver new retail, leisure, and residential developments.
It will leverage £3.5 billion in investment to build 1,900 new homes and 4,000 jobs, as well as a hi-tech business park.
To attract new employers, the city’s Local Plan calls for the construction of 11,000 new homes and 100,000 sqm of office space by 2028.
Through High Speed 2 (HS2), Derby will also benefit from improved transport links, with HS2 putting it less than an hour from London and 30 minutes from Birmingham.
Added amenities, employment opportunities, and transport links are expected to lead to significant population growth in the city, resulting in higher property demand, with Seven Capital predicting a 24% increase in house prices by 2025.
Several regeneration projects have already been completed in the UK’s second city, including the Bullring, New Street Station, and Grand Central.
The West Midlands Metro tram extension is currently the focus of Birmingham’s transportation efforts. A 6% increase in house prices is expected in areas with improved connectivity as a result of the project, according to Seven Capital.
As the Paradise and Snowhill developments create new office space and homes, Digbeth continues to undergo regeneration, including the £1.5 billion Birmingham Smithfield development that will create commercial space, offices, homes and public areas.
It is also anticipated that Birmingham will be a significant beneficiary of HS2, which will cut the journey time from Birmingham to London by 52 minutes.
There are a number of regeneration projects underway in Leeds, making it one of the fastest growing cities in the UK. After the revamp of Leeds City Station, a £270 million development project is set to transform Lisbon Square into a 2.8-hectare site with apartments, hotels and mixed-use offices.
Besides doubling the city’s size, it is also expected to boost its economy.
As part of the City Park scheme, £8.6 million will be spent on turning road space into green space, while £7.4 billion will be spent on expanding Temple Green Park and Ride, and £2.6 billion will be spent on restoring older buildings in Holbeck.
Slough, already a popular commuter destination, is set to gain £3 billion in redevelopment funding. It will be transformed into new homes, commercial space, retail and leisure facilities as part of the Heart of Slough project.
A new theatre and library, as well as several new sports and leisure facilities, including an ice rink, are already available in the town.
As part of the transformation, 1,600 new homes, 12,000 square meters of retail space and 40,000 square meters of office space will be built on the site of the old Queensmere Shopping Centre.
In addition, the recently completed development The Metalworks is less than 200 metres from a Crossrail station.
The popularity of Bracknell has led to several regeneration projects over the last decade.
The Lexicon retail and leisure complex is already part of the £770 million Bracknell Town Centre Vision 2032. The Grand Exchange, a new residential complex designed to capitalize on growth in demand from Londoners leaving the city, is one of the future redevelopment projects.
There will also be new retail offerings and public spaces at Princess Square and The Deck.