Partner Article

Infrastructure

Infrastructure

TIM EVANS

The topping out of Hitachi Rail Europe’s Newton Aycliffe factory, the on-going and important road improvements on the A1 western bypass and the Seaton Burn interchange as well as the news that, as of next spring, the North East will have a direct flight to New York are a succession of ‘good news’ announcements that underline the importance of infrastructure to the region.

And we are not alone in recognising that infrastructure “is critically important because it underpins our entire social and economic fabric”. From Knight Frank’s Global Cities 2015 report it is clear that “modern infrastructure, economic growth and the creation of real estate opportunities all go hand in hand”.

Citing London and Paris as examples, both are seeing major new rail networks respectively Crossrail and the Paris Grand Express. The key aim of both projects is to enhance the movement of an increasing number of passengers around these cities thus future proofing their growth as key Global Cities.

“In the process they are acting as catalysts for new development and the creation of new commercial hubs,” says the report. In London, Crossrail has been described as a game-changer with Bond Street, Tottenham Court Road and Farringdon stations handling a staggering 165 million passengers a year above current levels.

This enhanced transport network is therefore likely to lead to a significant increase in demand for property around the major transport hubs. New development will be needed across a number of sectors.

In Paris, the Grand Express project will comprise new Metro lines joining up the outer suburbs instead of running through central Paris. A series of local economic development plans are being implemented to create commercial hubs close to the new stations including the Paris Saclay project which will be a hub of innovation, effectively France’s Silicon Valley.

While these are two examples of Global Cities investing vast sums in infrastructure, the fact that the North East is in getting increasingly better communications through a twinned Tyne Tunnel and an increasingly better A1M albeit to the south of the region, we are now getting connected – by air west to the States and east to the Gulf. And of course we have much to look forward to when the Hitachi rolling stock is introduced on the East Coast mainline improving the quality of our links with London.

There is much still to do but without doubt we are heading in the right direction.

Tim Evans is partner and office head, Knight Frank.

ends

This was posted in Bdaily's Members' News section by Knight Frank .