Canary Wharf Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Canary Wharf over the last year was £567,640. This is nearly double the average for the whole of the UK, which is £284,691, as stated by the UK House Price Index. However, an average house price of half a million pounds is not uncommon in London, and Canary Wharf’s stock is not as expensive as many buy-to-let properties for sale in London, where the average is more than £1 million in some areas.

This average sold price is 10% down on the previous year. This isn’t surprising as the 2023 property market was characterised as challenging, and London was the worst affected of all regions.

But is the property market’s current disappointing performance set to continue? According to Savills’ Residential Forecast, growth is set to return to the UK from next year, and healthy growth is predicted from 2026 onwards. But it’s worth noting that London’s projected growth of 13.9% by 2028 is lower than the overall national average of 17.9%.

Canary Wharf is known for its towering glass skyscrapers and is even home to some of the tallest residential buildings in Europe. As such, many available properties are high-rise apartment blocks, including modern and luxury apartments. There are also trendy warehouse conversions popular with young professionals, and traditional Georgian and Victorian terraces can be found in outer areas like Limehouse and Blackwall.

So, what’s the most popular property type for buyers in Canary Wharf? According to Rightmove, most sales in Canary Wharf last year were flats, selling for an average price of £543,453. Terraced properties went for an average of £805,431, while semi-detached properties fetched £730,000.

Further Reading: If you’re considering a buy-to-let investment, find out about stamp duty rates on second homes with our useful guide!

Average Property Prices in Poplar

The average property price in this area is £542,880.

Average Rental Yield in Poplar

The average rental yield in this area is 6.59%.

Average Property Prices in Limehouse

The average property price in this area is £564,442.

Average Rental Yield in Limehouse

The average rental yield in this area is 5.59%.

(Average property prices taken were from Rightmove in early 2024; rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Canary Wharf to Invest in?

The most central parts of Canary Wharf, such as the area around Canary Wharf Station, are the most expensive, as expected, due to high demand and convenient location. This premium price tag means the rental yield is not as good as in other areas.

More affordable property can be found in the outer neighbourhoods of Poplar, Blackwall, and Limehouse. Out of these areas, Poplar has the lowest average property price, and its advantageous location near Canary Wharf has driven the average rental costs up, leading to the highest average gross rental yield.

Regeneration

Canary Wharf started as a regeneration project, built on London’s derelict docklands. It’s now a thriving urban hub, home to sleek glass, steel skyscrapers, and some of the world’s most major banks.

The area has benefitted from continuous redevelopment since its inception. However, as mentioned, the district’s growth has been stalled somewhat by the trend towards remote work, which has led to a loss of business tenants in the office buildings.

However, the area has just been announced as a recipient of the government’s ‘levelling up’ funds, sharing £242 million between Barking Riverside and Canary Wharf. This shows a renewed focus on the district, which may make Canary Wharf a smart long term investment choice in the future.

Lifestyle

There’s more to Canary Wharf than high-rise office buildings and corporate headquarters. The district is also home to numerous shopping and leisure options, with year-round events and exhibitions. The area’s appeal to renters comes from proximity to work, good links to the rest of London, and the aspirational lifestyle offered by being a Canary Wharf resident. This is more popular with some investors looking for serviced accommodation investments.

There are over 300 places to shop and dine in the area, so residents enjoy convenience and ample green spaces like Jubilee Park.

Home to luxurious new developments, there’s also prestige that comes with residing in Canary Wharf, which is likely partly due to the premium price tag that comes with living there.

Off-plan is one strategy for buying a newly built property at a lower price than usual. By investing during the planning or construction stage of the development, investors can take advantage of discounts offered by the developers.

As a coveted part of London for property, it’s not uncommon to find off-plan investment opportunities in Canary Wharf. But even with the discounted price that can be attained by going off-plan, it’s still much more expensive than other areas, especially as many of these developments are high spec and luxurious.

For investors looking for cheaper off-plan options in London, it could be worth exploring off-plan property in Luton or other commuter areas.

If you’re willing to look further afield, much more affordable opportunities can be found in major Northern cities such as Manchester and Liverpool.