JLL Residential

Nine Elms powers up

London, 16 November 2017

Following the publication of JLL’s Nine Elms Market Update, our sales and lettings experts discuss the future of one of London’s largest residential projects and the outstanding opportunities on offer for investors, buyers, sellers and renters.

Since the opening of our Nine Elms office in August 2015, sales and lettings prices have stabilised and interest among prospective buyers and tenants has grown. As the first wave of occupants move into the area’s residential centrepiece, Battersea Power Station, we will also look the developments, businesses and retailers arriving in the area over the coming year.
Lettings
The third quarter of 2017 has been very busy for JLL Nine Elms’ lettings team, with 27% more enquiries received during Q3 than during Q2 2017. The continued evolution of Nine Elms has led to one bedroom apartments achieving rental values of £435 - £500 pw, two bed apartments achieving £500 - £1,000 pw and three bed apartments reaching £650 - £2,000 pw in Q3.

This strong performance is due to the completion of a number of high profile residential projects; Battersea Power Station’s first phase, the Merano on Albert Embankment, Sky Gardens near Vauxhall and Riverlight 5 by the Thames. Nine Elms rental market has more choice than ever and tenants seeking luxury homes with easy access to central London are showing increased interest in the area. As a result, the Nine Elms lettings team recorded a 49% increase in deals between Q2 and Q3, and 40% more deals during Q3 than during Q1 of this year.

The rapid emergence of new commercial opportunities across Battersea has been another factor driving the Nine Elms’ lettings market. Since the announcement of Apple’s new UK HQ in the area, commercial interest in Nine Elms has spiked. This has led to Battersea Power Station’s developers freeing up 40,000 sq ft of additional office space in August of this year.

Helen Edwardson, head of JLL Nine Elms, observes: "A sense of community is now beginning to emerge, with a clearer line of sight on the huge potential the area has to offer. There is plenty of demand from young professionals and overseas students, who like the modern lifestyle and facilities on offer at the new developments. Perhaps most importantly, they seem happy to watch as the Nine Elms story unfolds."

Whether you are looking to rent, invest for the first time or to grow your portfolio, contact JLL’s agency team for expert information on this exciting new residential area.

daniel.j.turner@eu.jll.com
+44 (0)20 3147 1333

Sales
The Nine Elms’ sales market performs a little differently to the London norm. Only six residential schemes have completed since 2011, making 2,010 units available, but these properties have played an important role in setting the price point for the area.

JLL Residential Research has good news for buyers new to the Nine Elms market, reporting in our latest Market Update that prices have remained firm throughout 2017. Buyers will benefit from greater choice (and less competition) in residential properties, as 2018 is set to be a good year for completions in the area. These include:

• Haines House, part of The Residence, is due to complete in Q2/Q3
Ram Quarter’s Wandle Gardens block will begin completions in December 2017, and a show home is available
The Corniche’s Tower 2 is due for completion imminently
• Finally, Palace View, just next to Lambeth Palace, is also due for completion imminently, with apartments available now through JLL

The retail and leisure facilities that will serve Nine Elms’ new communities are also taking shape. Fitness studio Boom Cycle recently opened its flagship branch in Battersea Power Station, joining high end deli The Battersea General Store. Another new arrival is Mother, an outpost of the acclaimed Copenhagen pizzeria. The Riverlight development, a short walk from the Power Station, now contains a nursery and a range of cafés and eateries, along with The Institute of Masters of Wine, which runs regular tastings and other public events.

Nine Elms is on track to become an ideal neighbourhood for professionals and young families alike. JLL’s sales team can provide street by street, development by development advice on buying and investing across Battersea. Contact us to learn more:

helen.edwardson@eu.jll.com
+44 (0)20 3147 1333