London’s Canary Wharf: From Derelict to Dazzling

From acres of derelict dockland to a thriving business district, the sweeping transformation of London’s Canary Wharf has come to fruition—roughly a quarter of a century after it was conceived. The massive urban-renewal project was the brainchild of Britain’s then-prime minister Margaret Thatcher in the late 1980s. Now it is home to blue-chip financial companies, from Credit Suisse to J.P. Morgan, high-end hotels, bespoke shops and restaurants and, increasingly, luxury real estate. James Hyman of Cluttons estate agents describes the metamorphosis: By the 1990s, “Canary Wharf was established as a business district, but not really as a place to live,” he said. “People who did live there had to get out at the weekends because it felt quite isolated and lonely. A lot of the bars and restaurants only opened Monday to Friday.” Today, some Londoners like describing Canary Wharf as a “mini Manhattan”—albeit one with only about 16 towers dotting the skyline. A recent study by estate agents Knight Frank reported an 89% increase in its resident population between 2001 and 2011, the latest census data available. Property prices have risen by 27% since the start of 2013—compared with just 10% across prime central London. Nonetheless, Canary Wharf—named for the cargo shipped from the Canary Islands that was once unloaded in this area—is seen as a good value relative to prime London, and this is driving demand. The heat of this market was demonstrated during the summer, when pre-sales began on apartments in the 41-story Maine Tower. Buyers lined up for the launch event, and all 208 apartments sold out in four hours, with prices ranging from $530,000 for a studio to $1.9 million for a three-bedroom apartment. Those unable to get a slice of Maine Tower, scheduled for completion in 2019, have plenty of other high-end options. The first homes at Berkeley Homes’ South Quay Plaza also went on sale in the summer, with prices from $740,000 for a 486-square-foot studio apartment to $9.1 million for a 3,000-square-foot penthouse. This 68-story skyscraper, designed by Foster + Partners, will have 888 apartments, a private residents’ bar, restaurant and screening room, and a health spa. When complete, it is expected to be Britain’s tallest residential tower. Its first phase of construction will be completed in 2020. Developer Canary Wharf Group, meanwhile, plans to build more than 3,200 new apartments (including almost 500 in a 57-story tower designed by the architects Herzog & de Meuron) over the next 10 years. It also plans almost 2 million square feet of office space and 335,000 square feet of shops and restaurants. The neighborhood’s first primary school is also in the works. The first phase of this project, 10 Park Drive, went on sale in July. Brian De’ath, head of residential sales at the Canary Wharf Group, said 231 of its 345 apartments had sold within seven weeks. The remaining homes, in two buildings of 13- and 42-stories, are priced from $890,000 for a 413-square-foot studio, up to $1.3 million for a two-bedroom, 901-square-foot apartment. Pre-sales of penthouses, the largest of which will measure 2,400 square feet, will start next year. Noteworthy is the level of amenities being offered in Canary Wharf’s new towers. “They have to have the pool, the gym, all the leisure facilities—all the add-ons—because that is what people want nowadays,” said Kiran Sandhu, associate at Knight Frank. By the time the residents of South Quay, Maine Tower and the rest move in, Crossrail, a new east-west London train link, will be up and running, providing direct service to the West End and Heathrow Airport, giving Canary Wharf another fillip. “We are seeing a shift of people who are cashing in on their homes in central London and moving to Canary Wharf because the transport links are just so fantastic,” Mr. Sandhu said. This article originally appeared in The Wall Street Journal.