West End set for booming recovery as tourists flock back to capital
Londoners can bet on a roaring West End comeback, after Peel Hunt analysts pointed to a resilient recovery in occupier demand and rental tone.
In a note yesterday, Peel Hunt said that the future looked cheery for the central London shopping and theatre destination, “despite wider uncertainty and the cost of living squeeze.”
It comes as Colliers have forecast retail volumes in the cultural hotspot to more than double this year and to surpass pre pandemic levels next year, “providing a strong underpin to the renaissance,” Peel Hunt added.
The return of international tourism has boosted footfall on Oxford and Regent Sts in recent weeks, as has a revival of office working this spring.
Property investment and development company Capital & Counties was plucked by analysts as “the most attractive way to play the West End’s recovery.” Shares are sitting at a 31 per cent discount currently, at an “unjustified discount” to its peer Shaftesbury.
“Domestic consumer spending in the West End is arguably less exposed to the squeeze on incomes than other markets as a result of the more affluent demographic,” the note explained.
What’s more, shoppers were more likely to “pare back spending elsewhere” due to the “experiential element” of the area.
Real estate investment trust Shaftesbury revealed last week that its 16-acre portfolio has inflated in value over the past few months, driven by a rebound in tourism.
However, the area had seen fewer Asian tourists thanks to continued Covid travel restrictions in China, Shaftesbury boss Brian Bickell told City PM last week.