Following the success of Gunwharf Quays and improvements to the city centre, property chiefs believe that Old Portsmouth will now become the new economic hotspot for the area. Already an increasing number of bars and clubs in Portsmouth have proved beneficial to the city and its surrounding areas.

With the construction of new housing in the area already under way, a number of property companies now feel that the time is right to invest in previously derelict urban areas.

Michael Green, a partner at commercial property firm King Sturge said: "Other urban centres like Manchester, Newcastle, Glasgow and Nottingham have achieved economic success partly through building up a successful and exciting retail and leisure economy, and the same is happening in Portsmouth."

Gunwharf, which opened last year, has already had £200m invested in to the area, encouraging the development of new shops and flats, which are being built at the waterside.

Ian Bridges, inward investment officer at Portsmouth City Council, said: "Portsmouth is forecast to grow above the UK average over the coming years, so we are looking at a brighter future for the area."