NEW APARTMENT BUILDINGS
RIVAL LUXURY HOTELS
rise in new build apartment sales prices since 2009
average price paid for central London new build apartments since 2014
private 5* apartments in central London
of units under construction or completed since 2014 are in 5* developments
of 5* apartments since 2014 are in Fitzrovia and Marylebone
HOTEL-STYLE LUXURY LIVING IN CENTRAL LONDON
Some of the best addresses in the world can be found in London’s new luxury apartment complexes, where residents enjoy much more than just unparalleled living space with spectacular views. And, as this report will explore, many of these ultra-prime developments can be found in emerging property hotspots like Bayswater and Marylebone.
Welcome to a new style of city living, where residents have access to concierge facilities, gyms, swimming pools, spas, retail outlets, valet parking and any number of bespoke services, all available on-site and delivered to an exceptionally high standard. It’s just like living in a luxury hotel. That’s why we have come up with a star-rating system to help demonstrate how these superb properties deserve to rub shoulders with some of London’s luxury hotels.
This new report has been commissioned by leading London estate agency Kay & Co, with research analysis produced by Dataloft.
ULTRA-PRIME DEVELOPMENTS SPRINGING UP IN EMERGING HOTSPOTS
Historically, luxury apartments have clustered in London’s traditional prime heartlands of Belgravia and Mayfair. But in recent years, developers have shifted their attention and delivered ultra-prime products in London’s emerging hotspots such as Fitzrovia, Marylebone, Westminster and Bayswater.
The map below highlights the changing geography of luxury apartment developments, showing the shift from traditional prime to new prime London.
APARTMENT BUILDINGS WHICH RIVAL HOTELS
London’s new build market has witnessed phenomenal investment in recent years. The rise in global wealth and an appetite for best-in-class property has encouraged developers to stretch the boundaries of specification and pricing to offer not just a home but a lifestyle.
As a result, prices paid for new build apartments in central London have increased at an astonishing rate. Based on the year the property completed, the average price rose from £511,000 in 2009 to £2.25 million in 2014–15. That’s an incredible 341% rise.
New apartments achieved more than double the price paid for second-hand flats in 2013, and over the past 18 months they have sold at a 62% premium. It is not ‘newness’ that drives the price premium but quality.
As the demand for luxury living escalated, developers have continued to raise the bar on finishes and service levels. Prices have risen as standards have soared.
Today, expectations in the new build market are higher than ever. Developers seeking to achieve record-breaking prices are challenged to deliver exceptional levels of extravagance and service, and new apartment complexes are designed to offer just that. In order to quantify the changing market, we devised a hotel-style star-rating system for new developments across prime central London.
We collated amenities in all developments comprising 40 or more private units built during the past ten years or currently under construction (38 in total). We allocated a score to each based on the range of amenities. We used a dual-strand system of analysis and awarded points for the presence of amenities or services as well as additional points for the quality of that amenity or service. This methodology is set out at the end of this report. Our database included almost 4,000 units of high quality residential development delivered over the past decade.
STAR-RATINGS: THE FINDINGS
- 27% were graded 5* and 33% were 4*. However, the proportion achieving top grades rose steeply in the last 18 months from 60% to 74%.
- Perhaps more striking is the fact that more 5* units are due to be completed in 2015 and 2016 than in the ten previous years combined.
- There will be more units rated 2* and above completed in 2015 than in any other year for the past decade, demonstrating the increasingly high standard of development coming through.
- 81% of all 5* units scheduled for completion in 2015 and 2016 are in Fitzrovia or Marylebone.
- Fitzrovia and Marylebone account for one third of all units with ratings of 3* or higher that will complete in 2015 and 2016.
London’s best addresses for hotel-style luxury living
We have looked at 38 major apartment buildings for this report: 10 have been allocated five stars; 9 four stars; 10 three stars; 7 two stars and 2 one star.
The shift from traditional prime to new prime
An analysis of 4* and 5* units developed between 2005 and 2016 shows how the geography has shifted from London’s traditional prime locations of Mayfair and Belgravia to the new prime locations in Marylebone and Fitzrovia.
What makes a five-star development?
The dual strand system enabled us to differentiate between, say, a 20-metre basement swimming pool and a 50-metre roof-top pool with panoramic views of the city. The grading system is based on a series of criteria including: concierge service, views over London, on-site facilities, parking (including valet parking), outside private and communal space, location and the number of Michelin-starred restaurants in the vicinity.
Our analysis is limited to developments with 40 or more private units. It does not intend to suggest that smaller schemes cannot also be considered five-star developments, and in fact there are a number of these across prime central London.