London’s West End is expected to see revenues rise up to 10 billion pounds by 2025, despite a slowdown in recovery over the next two years.
The figure comes as part of a new report by the New West End Company (NWEC), which represents retail, leisure and property owners across the areas of the West End, covering both the long-term forecasts and the turnover of the previous year.
In 2022, the current performance estimate of the group stood at eight billion pounds, a 56 percent increase over the 2021 figures, but a decrease of 11 percent in 2019, pre-pandemic.
The research is based upon an analysis of MasterCard transactions alongside the Colliers mobility and footfall data, which also found the levels of the second half of the year to have exceeded expected performance despite the challenging environment.
Growth over next two years expected to be lower than previously expected
Spending behaviours also outperformed according to the report, rapidly growing the first half of 2022, yet plateauing in the latter half likely triggered by the changing economic environment.
Much of the growth in the area this year was driven by the opening of the new Elizabeth Line in London’s tube system, which helped to boost footfall around Bond Street and Tottenham Court Road, where new stations had been added. According to the report, 13 percent of visitors are typically now coming via the new tube line.
While 2022 showed promise for the growth, NWEC did note that 2023/24 forecasts were weaker than those generated a year ago.
Increased costs, pressure on consumer expenditure and operating costs for occupiers will be the defining issues, making growth and recovery challenging over the period.