Figures from the Pastor Real Estate reveals that housing stock in Prime Central London has increased by 8.6%, since 2009, totalling 5,200 new residences. In an area thought to be ‘out of space’ Prime Central London has outgrown Inner London boroughs by 4%, as developers took advantage of low land costs following the 2008 market crash.
Prime Central London has been high on the investment agenda since 2008, with both domestic and overseas buyers predicting the recent Indian Summer enjoyed by the UK housing market. In the six years since 2009, 144 development schemes have been completed in Prime Central London, with almost two thirds consisting of 10 units, most comprising studio and one-bedroom apartments.
Fast-forward to 2015 and just when you thought Prime Central London couldn’t get any bigger there are 277 development schemes in the pipeline, which will deliver 7,179 units to the market. This represents twice as many schemes and three times as many units than have been completed since 2009.
Responding to growing demands from overseas buyers coming into the market and domestic buyers increasingly choosing inner city family homes over vast country spreads, developers are shifting from small single-occupancy units to larger homes suitable for families. For example, there is at least one three-bedroom unit within 71% of the developments currently in the pipeline.
There is also a marked increase in unit sizes, with an increase of 40% in units in application compared to those currently under construction. Pastor Real Estate has found that that average unit size for schemes under construction in Prime Central London is 543 sq. ft. compared to 763 sq. ft. of units currently at application stage.
The Pastor Real Estate report has also identified Marylebone as the rising star of Prime Central London, with the area currently undergoing a rapid transformation. The report identifies that of 13 development schemes set to complete in 2015, 11 are in Marylebone. The area famous for high-profile restaurants and the well-known fictional English detective will provide almost 50% of schemes in the pipeline, equating to 644 new residences.
Susan Cohen, Head of Sales and Lettings at Pastor Real Estate comments:
“Pastor Real Estate operates within Prime Central London and a key Unique Selling Point of our business is our deep local knowledge of the markets and our multi-layered real estate offering.
“Using these statistics we have found that not only are new homes getting bigger in Prime Central London, but everything that comes with them is getting grander. As wealth continues to pour into the capital, ultra-prime living standards increase. New buyers not only want larger homes providing more space for larger families, they also want all of the luxury amenities; concierge services, porters, 5-star hotel quality spas and gyms, IMAX cinema rooms and private dining rooms to entertain guests at will.
“It’s noticeable that the websites promoting high-profile schemes such as Clarges, 20 Grosvenor Square and The Chilterns are now primarily promoting size, space and a full arsenal of luxury amenities. London is moving away from single units and in years to come we will see more and more fabulously luxurious large lateral homes appearing on the market.”