The Elizabeth Line is expected to drive footfall into the West End, boosting sales over the next decade by up to £7bn according to new data.
Commercial real estate firm Colliers, alongside New West End Company, expects the West End to return to historical levels of £10bn revenue by 2025.
Much of this growth, it said, will be “driven by the opening of the Elizabeth line, which is expected to be the main mode of transport for 13% of visitors into the district by 2023.”
This is expected to boost the region’s annual performance by 7% by 2031, which equates to sales of between £700mln and £800mln a year.
Shopping patterns have shifted since Covid, said Colliers, with customers coming to the West End less frequently, but with a greater intention of buying.
“With the full introduction of the Elizabeth Line, this is set to drive and boost spend even further,” said Paddy Gamble, co-head of retail strategy and analytics.
“So we have really taken a deep dive here with our analysis, combining footfall, transactions and other key metrics together to get a true picture of what is happening,”
Recovery, however, will not be plain sailing, with the 600 hotels, retail, and restaurants represented by the New West End Company likely to be impacted by macro conditions.
Bond Street, Oxford Street, Regent Street and Mayfair and the stores in these areas have been hampered by a challenging consumer climate due to the cost of living crisis, international visits still being below pre-pandemic levels and a shift towards online shopping, said Colliers.
Shares in Great Portland Estates (LSE:GPOR), which owns locations in the West End, fell by 1.1% to 430.6p in mid-afternoon trading, while Shaftesbury fell 1.5% to 325p.