These comments come after the new government confirmed plans to continue the HS2 rail development, while the mayor of London has praised plans for the £1.2bn transformation of Gatwick Airport.

HS2 is set to improve the transportation links between the North of England and London as the government looks to create its Northern Powerhouse, which could see plenty of overseas investment in major projects in the North. 

These projects led Development Finance Today to ask the property development industry whether transport and infrastructure development had become the most lucrative area for developers.

“Capital projects are always of interest to developers,” said James Bloom, managing director of development finance at Masthaven.

“Glaxo Smith Kline announcing a £275m investment in the UK shows that investors are still confident in this market, which is really positive news post-Brexit.”

Nick Hilton, head of lending at Century Capital, felt that while transport and infrastructure may or may not currently be a lucrative area for developers, it was likely to be one in the near future. 

“If you take the proposed Crossrail 2 as an example, it is evident this infrastructure would support up to 200,000 new homes. 

“As London improves its transport network, it will inevitably create demand for new housing. 

“On the flip side, investment in London’s transport system could feel the impact of Brexit if there is a sudden decline in property prices.”

Bob Sturges, head of PR & communications at Fortwell Capital, added: "Major infrastructure projects are bound to catch the eye of developers, whether for commercial or residential purposes. Crossrail is an obvious case in point.

"For us, a number of lucrative and attractive funding opportunities have presented themselves through the regeneration of previously unfashionable areas, such as Croydon in south London.

"Major inward investment, coupled with a more liberal and certain PDR [permitted development rights] regime, has encouraged fleet-of-foot developers to move in in numbers.”

Ashley Ilsen, head of lending at Regentsmead, concluded by comparing the UK’s infrastructure growth to the one seen in China. 

“This definitely creates opportunity, but it’s hard to ascertain to what level this benefit has already been built into the existing price of property in the area. 

“As developers are always looking for opportunity, they try to pre-empt the positive effects that infrastructure investment will have on the local economy and subsequently on property prices.

“When I used to live in China, there was a rapid increase in investment in infrastructure, with some roads and train lines being built when there was actually no demand for these services, however, it’s unlikely this would be the case in the UK.”