Nine Elms, the no man’s land on the south bank of the Thames, is being billed as Central London’s last significant regeneration area. According to developers, this is the place where savvy investors should be spending their cash.

So far, the area has gained the approval of the US State Department, which will relocate the American Embassy from Mayfair to the south side of Nine Elms Lane. Also under consideration is the redevelopment of the biggest fresh fruit and vegetable market in the UK — New Covent Garden — to include a retail market, cookery school, cafés and restaurants.

National Grid Property Holdings, which owns the gasholder site next to Battersea Park, plans to convert it into a mixed-use development, comprising two residential towers and community facilities. But the most exciting plans are for Battersea Power Station, right.

Real Estate Opportunities (REO), the company that purchased the site in November 2006, has unveiled a £4 billion masterplan for the Grade II listed landmark. It includes preserving the main building, with Turbine Halls A and B used as event areas, a conference centre and a green energy plant to power the proposed 3,700 new homes, gym and office space. However, sceptics are unconvinced. “The power station has a long and chequered history,” Stephan Miles-Brown, head of residential development at Knight Frank, said. “It is a huge project — there are 15 years of work to be done there.” And, he points out, there is no guarantee that the plan will be realised without improvements to the transport infrastructure.

He says that the Vauxhall end of the borough is a safer bet for investors. This end is served by the Victoria Line, overground links to Waterloo and London Bridge, and several bus routes.

Apartments in the sprawling St George’s Wharf development start at £399,950 for a one-bedroom flat and £599,950 for a two-bedroom. As you move along the river, prices start to fall — homes in Nine Elms sell at a discount to those in more fashionable neighbouring areas. Findaproperty says that the average house price in Nine Elms is £568,000, compared with £681,000 in Wandsworth and £758,000 in Clapham. Savills is selling flats offplan at this space (thisspacelondon.co.uk), a former Southbank University building on Wandsworth Road. Studios start at £185,000 with one-bedroom flats selling for £220,000 and two-bedrooms ranging from £315,000 to £500,000.

There are still some flats available in the Viridian development, near Battersea Park, starting from £325,000.

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