Centre Point piazza The metamorphosis 2–3
Overview
London is always changing: its iconic skyline forever evolving and areas that were once undervalued finally finding their feet. Covent Garden and Southbank are prime examples of areas that have undergone a significant renaissance and are now well established destinations with a property market to match. Prices in Southbank have tripled in a five year period. This partly reflects the high quality product offering, but another reason for the large price uplift is the significant improvement in its public realm spaces. This is key to the re-branding effort when taking an area into truly prime territory.
So, amidst all the development currently underway in London, which area do we think will undergo the most significant changes? Which area is benefitting from high quality public realm improvements as well as high quality residential offering? In our mind, the answer is clear: it has to be the Tottenham Court Road / Oxford Street interchange. 4–5
Building London is continually evolving with once Location has never been Tottenham Court Some of this is due to the ongoing work on As seen with Southbank and Covent Garden, undervalued areas finally finding their feet. Road’s problem. It is a mere stone’s throw Crossrail. Tottenham Road Court station we anticipate that in a few years’ time it will towards prime Covent Garden is a prime example of this. from the trendy bars of Fitzrovia, the buzz is currently undergoing a £1bn facelift, be hard to remember what it felt like Originally an aristocratic residential area, with of Soho, the tree lined theatre district of both below and above ground. This is the wandering through Tottenham Court Road the European-inspired Covent Garden Piazza Covent Garden, the universities and pubs most significant transport investment in now. While it will retain its rich heritage and Following in the footsteps having a huge influence on British town dating back to the 1880s of Bloomsbury the West End for decades and required to some things will stay the same, Denmark planning, it spent a spell as a den of iniquity and the high end shopping of Mayfair – accommodate the extra 70 million people Street has always been the landmark music of areas such as Covent before circling back to being one of the not to mention the British Museum, the that Crossrail will welcome to the area per street in London and will hopefully remain as Garden and Southbank, capital’s most valuable and sought after second most visited cultural attraction in year. In fact, our research suggests that the such, much of it will be unrecognisable; it will areas. These days, it is buzzing with the the world. But despite this, the Tottenham substantial increase in connectivity will blossom into a prime London real estate Tottenham Court Road is excitement of opera, theatre, boutiques and Court Road / Oxford Street interchange increase residential values in the area by mainstay and finally be more in line with its undergoing significant restaurants, and is well established as a has historically always been a pocket of 2.9% per annum in the period prior to its neighbours, Soho House and The Ivy. destination for food lovers, fashionistas distinctly undervalued property. Perhaps opening. In addition, traffic congestion in the regeneration, with public and international investors. Big name brands this has been due to its less than salubrious area is set to ease with the removal of the So with all of this in mind, it really is quite realm improvements that such as Chanel, Burberry and Jo Malone past, or perhaps it is because walking one-way traffic system that has historically hard to find a reason not to invest there. now grace its streets and the area welcomes through its streets has, until recently, been hindered the area. will make this the next big 44 million visitors every year, leading to the a less than enjoyable experience: residential location. Telegraph referring to it as ‘a grown-up a miss-mash of mobile phone shops, low These overall improvements in connectivity Shoreditch’. As a result, the average price of end clothing retailers and souvenir shops. have already seen the area start to attract units in new development schemes has Whatever the reason, despite its location high profile office occupiers like Google, almost doubled over the past five year, and and potential promise, it has historically which has taken up space at Central St Giles are now in clear prime territory at £2,000 psf. remained overlooked by many developers and Facebook, which is now located on and investors. Rathbone Square. The Southbank has gone through a similar metamorphosis in recent years. Once a However, the pinnacle of this transformation derelict skater’s haven, it is now the most Premium added to a scheme prices that has will be the £350 million Centre Point Piazza. densely packed cultural hub in the capital effective placemaking attached Set to rival Trafalgar Square and Covent and attracts over 22 million visitors per year. Garden, the piazza will lie at the feet of the In fact, these days it is difficult to remember Centre Point Tower and play host to a cultural that only 20 years ago such intrinsic aspects % centre, bars, restaurants and high end of the London skyline as the Shard and 10 retailers more in line with those currently London Eye, simply didn’t exist. This found in neighbouring areas. culture-led regeneration of the Southbank However, all that looks set to change. has had a profound impact upon the market, The redevelopment of Centre Point has with average prices increasing from £500 psf brought the area into focus, it’s is the first to over £1,500 psf in just a five year period. time in many years that such a prestigious This partly reflects a higher quality product development has been underway here. What can you get for your on offer, but this in itself was engendered by This iconic Pop Art building that speaks ongoing improvements to its public realm of the area’s swinging 60s past has money in West End? spaces. This is key to the re-branding effort uninterrupted (and protected) views of the when taking an area into truly prime territory. city and is clearly highly sought after.
The dramatic price increases reflect a While the Centre Point tower is currently regeneration premium, which we have a diamond in the rough, there are many estimated adds 4.9% per annum to house intertwined regenerations underway in the prices (over and above wider growth). area, meaning that the wider area will soon 15th Floor be up to the standard merited by such £3,000 psf All of these factors make us optimistic for a super prime residential development. the future of Tottenham Court Road / Oxford Street interchange, as this area is currently undergoing similar significant residential and 5th Floor 6th floor Penthouse public realm improvement. 8th floor £3,500 psf £2,500 psf 5th floor £3,400 psf £2,500 psf 6th Floor £2,400 psf
Hollen Street The Pathé Building The Beecham Centre Point One Fitzroy Place 6–7
A world class destination
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36 31 25 11 38 12 26 41 27 04 19 20 06 15 10 18 30 02 13 01 45 Strand 09 37 05 22 Mayfair 14 03 44 43 16 29 07
Retailers Restaurants Theatres Universities
01. Burberry 12. Arbutus* 24. Dominion Theatre 37. Kings College 02. Chanel 13. Balthazar 25. Cambridge Theatre 38. LSE 03. Fortnum & Mason 14. Hakkasan* 26. Prince Edward Theatre 39. UCL 04. Liberty 15. L’atelier De Joel Robuchon* 27. Royal Opera House 40. RADA 05. Louis Vuitton 16. Nobu 41. Royal Ballet School Offices 06. Mulberry 17. Pied a Terre* Museums 07. Rolex 18. The Ivy 28. Saatchi & Saatchi 08. Jo Malone 19. Yauatcha* 29. BAFTA 42. British Museum 30. Apple 43. National Gallery Members clubs Hotels 31. Google 44. Royal Academy of Arts 09. The Garrick Club 20. Soho House Hotel 32. Facebook 45. Somerset House 10. The Groucho Club 21. The Sanderson 33. Linkedin 11. The Hospital Club 22. W Hotel 34. British Film Institute 23. Charlotte Street Hotel 35. BBC 36. 20th Century Fox *Michelin star Contacts Jennet Siebrits Mark Collins Head of Residential Research Chairman of Residential +44 20 7182 2066 +44 20 7182 2264 [email protected] [email protected]
Luke Mills Phillippa Drysdale Executive Director Senior Analyst +44 20 7182 2949 +44 20 7182 2186 [email protected] [email protected]
Sources CBRE, Molior
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