July 2008 Archives

The Times has criticised opponents of urban development and gentrification in a leader column that comments on the proptests against the proposed 51-storey tower designed by Lord Foster, at Bishops Place, in Shoreditch High Street.

The development would replace a bar called The Light and Hammerson maintains that the proposal would transform the largely empty site for the better.

Hackney Council recently deferred a decision on the application asking Hammerson to find a way to incorporate The Light Bar into its plans.

The Times says numerous parts of the capital and other cities have benefited from gentrification enabling inner cities that were once depopulated and dangerous to thrive.

Work is set to start on what may be one of Dubai's most unusual skyscrapers.

Named Dubai 55 TM, the residential tower and its concepts are the work of U.K based architectural firm Glenn Howells Architects in conjunction with 360 Time World.

The tower is the first of 24 skyscrapers that will rotate and tell the time, the other 23 towers will be built in major cites across the world to create a global time ring.

Construction is expected to start on 08-08-08, finish on 10-10-10 and be ready for residing on 11-11-11.

Crossrail was this week given the royal seal of approval after almost two decades worth of talk. The largest transport project in the UK since the Channel Tunnel aims to create an east-west rail link, carrying an estimated 78,000 passengers per hour during peak times.

Transport Secretary Ruth Kelly described the scheme as being of "major significance" to both London and the country.

But what real advantages will be reaped by London businesses and their employees, and will this scheme impact demand for space in the central London office market?

Recently talks regarding interest rates and how the rates should be adjusted have been at the centre of many debates. It has been widely suggested that there is no real reason for the Bank of England to either raise interest rates quickly or to cut them, and therefore it appears that they will be held for the near future.

Is the current rate being adjusted to economic change accordingly, and how is this affecting the property investment market?

The current market downturn is affecting many in the real estate industry, and those that have relied on heavily geared portfolios in the past are beginning to fold under the pressure. While gearing can offer successful returns in a buoyant market, a market slowdown can offer the reverse result with repayments on debt increasing as capital values fall.

Is this approach to property investment still offering worthy rewards in the long term, and are the risks associated with highly geared portfolios becoming too great for many to take on?