Page 2 - JLL - The Transport Premium

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JLL Research

Transport premiums

When large regeneration or infrastructure projects are proposed, investors
are often the first to see the potential, happy to buy in at an early stage to
benefit from the creation of a new place underpinned by connectivity
improvements.

Various infrastructure projects across London illustrate that both capital
values and rents spike after both the announcement and delivery of these
projects.

Speculators buy in early, purchasing homes in the anticipation that
investment will lead to additional growth in house prices. Others are willing
to pay a premium once improvements are in place, stations open, and trains
begin to run. Landlords benefit too, as improved travel times and increased
capacity makes areas more attractive to prospective tenants.

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