Canary Wharf Apartment Prices: How High Will They Go in 2023?

In front of Canary Wharf Station, by Ehimetalor Akhere Unuabona via Unsplash

Introduction

Canary Wharf is located in East London, part of the Isle of Dogs in the borough of Tower Hamlets. It sits within London's Zone 2, just east of the City of London financial district. The area has undergone a dramatic transformation since the 1980s after much of its old docklands were redeveloped into a thriving business and residential hub.

Once dominated by disused wharves and warehouses, Canary Wharf is now one of Europe's largest clusters of skyscrapers. Major banks and financial companies have flocked to the area, attracted by modern office spaces and transport links. This influx of companies and professionals has also created strong demand for luxury housing.

Average apartment prices in Canary Wharf

As of May 2023, the average price for an apartment in Canary Wharf stands at just over £488,000 according to figures from HM Land Registry. This represents a slight decrease from an all-time high in April 2023, but prices remain extremely elevated overall. The head of residential at Cluttons Estate Agents, James Hyman, estimates that around 70 per cent of Canary Wharf’s flats are bought by investors. Providing a large pool of rental demand from professionals looking to both live and work in the area.

To put the growth into perspective, back in 2013 the average price of a flat or apartment in Canary Wharf (and Tower Hamlets, as a wider area), was just £300,000. An increase of over 50% within a decade, highlighting the increased demand for housing.

Drivers of demand

Prices vary widely depending on factors like size, amenities, location and views. New luxury developments with high-end finishes tend to sit at the top end of the pricing spectrum. For example, a modern 3-bedroom apartment in one of the area's premier buildings can sell for well over £1 million. More affordable options do exist, such as older 1-bed flats further from transport links priced under £400,000. But generally speaking, Canary Wharf real estate comes at a premium price tag.

Some key factors driving this demand include

• Prime location attracting affluent finance professionals
• Short commutes to major employers within Canary Wharf
• Transport connectivity via the Jubilee Line, DLR, and Crossrail
• Prestige and modernity of new developments
• Proximity to dining, shopping and leisure

Things to do in Canary Wharf

With its striking skyscrapers and renovated docklands, Canary Wharf offers plenty of attractions beyond just office buildings. Go shopping at one of fives malls residing in Canary Wharf, with over 120 stores including luxury fashion brands.

During the summer months, you can enjoy free mini golf, and summmer screenings in the Jubilee Park, Canada Square Park, and Cabot Square areas. Whilst in the winter, the iconic Canary Wharf Ice Rink returns at Canada Square Park. For year-round entertainment, Canary Wharf now boasts some exciting new attractions. Fairgame offers a revolutionised take on classic fairground games, whilst adrenaline junkies can race around Capital Karts, the UK's fastest indoor go karting track located right in Canary Wharf.

Ongoing developments

New residential developments continue steadily.

The Canary Wharf Group's Wood Wharf project is estimated to add over 3600 more homes when completed, with at least 25% being marked as affordable housing. While prices may soften at the margins, constrained supply against strong demand will likely prevent any major falls in average pricing for the area.

Conclusion

Once desolate docks, Canary Wharf has transformed into one of London's most prestigious and expensive residential neighborhoods. Apartment prices now average almost £500,000, buoyed by strong demand from finance professionals and investors alike. With major employers like HSBC (for now), Morgan Stanley, and J.P Morgan calling Canary Wharf home, and new developments continually adding supply, the future looks bright for this reinvigorated commercial and residential hub. For buyers seeking a luxury flat with connectivity and amenities, few areas can match Canary Wharf.