Why London is still calling | news

I remember walking down Piccadilly on the first day of the lockdown and not seeing a single other person on the street. When the capital’s offices, shops, bars and museums fell silent, the eerily apocalyptic sight was reminiscent of a scene from the Danny Boyle film “28 Days Later”.

In retrospect, of course, it’s easy to say that London would always bounce back, although it certainly didn’t feel that way back then.

Fortunately, my alarmism has not been shared by others who have a more long-term view. Take Robert Evans of Argent, the developer of King’s Cross, which is now considered one of the most respected examples of neighborhood renewal, not just in London, but in the UK and around the world. In this week’s edition he looks back on the development of 20 years.

For Argent, the short-term threats posed by a global financial crisis and even a pandemic were only bumps – albeit large – on the way. The developer’s strategy has always been based on “long-term investment, long-term development, long-term ownership, long-term placement”.

Same goes for Mayfair landlord Grosvenor, who has seen the London property market go through more ups and downs than most and this week demonstrated its commitment to the city by promising “the first UK property company to operate by 2025 is climate neutral in all areas ”.

Investors also trust capital. Investment manager Federated Hermes and Square Roots, London Square’s affordable housing company, have acquired land in Colindale, north London, to deliver a 505 home project with an estimated GDV of over £ 100 million.

Of course, the real estate industry doesn’t take the city’s recovery for granted. Ahead of Rishi Sunak’s upcoming October 27 budget, developers and owners have expressed concern that London will be overlooked amid a series of “replenishment pledges” based on major investments for northern cities. They are calling on the Chancellor to give more money and political support to help rebuild London and prevent it from being accidentally “leveled” – an appeal I suspect will fall on deaf ears.

Speaking of the budget, is something being done to address the worsening problem of business rates? Its effects are now even being seen in the most famous of Britain’s high streets, London’s Oxford Street, where Westminster Council is offering rent-free space to startups and intends to cover business rate bills as well, to create a festive mood in the mood Before Christmas and into the new year.

The hope is that 2022 will boost the capital’s recovery. The industry is certainly optimistic, not just about the prospects for London, but for the country as a whole. Almost 90% of respondents to our latest sentiment survey expect real estate investments to be higher in the final quarter of 2021 than in the third quarter.

In addition, more than 75% are more optimistic about the future than they were three months ago. About 18 months after this initial lockdown, we hope your optimism is well placed.