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24-25 MARKET SIZE DEVELOPMENT & PERFORMANCE REPORT 2015
PRIME RESIDENTIAL DEVELOPMENT TRENDS & INSIGHT GLOBAL DEVELOPMENT REPORT 2015
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The luxury residential development 21 industry has become an increasingly 23 exciting arena over the past decade as architectural and design standards have 25 continued to break new ground. 27 Economic and business connectivity between the world’s key cities, combined with unprecedented levels of wealth creation across the developing world, has created global demand for the finest properties. Knight Frank has been at the forefront of this process, helping to share development skills and research, and forecasting the new markets and opportunities around the world. Within our report we consider the developments that are influencing trends in design, facilities and services; highlighting London and New York, but casting an eye over the best from around the rest of the world. We focus on the challenge faced by many developers who are looking to add value, and assess how the integrated approach of our teams, in locations like Mumbai, Dubai, Sydney, the Caribbean, Hong Kong and Madrid, adds real value to the developer’s decision making process. The report also reviews key development hotspots in six leading cities, shares insight from Robert Lyle, the leading luxury lifestyle and branding expert, and Marc Kushner, an eminent New York-based architect. As competition intensifies in many centres, ECONOMIC AND BUSINESS“ CONNECTIVITY it is crucial to understand occupier needs and emerging demand trends. To facilitate BETWEEN THE WORLD’S KEY CITIES, this, our research teams continuously review COMBINED WITH UNPRECEDENTED LEVELS the performance of rents, prices and sales volumes in key markets across the world in OF WEALTH CREATION ACROSS THE order to ensure our clients and their portfolios DEVELOPING WORLD, HAS CREATED GLOBAL are in the strongest position possible. DEMAND FOR THE FINEST PROPERTIES I hope you enjoy reading this report and it helps to demonstrate the depth of our understanding and knowledge. We are able to commission specific market analysis on ” local market trends and the forecasting of new wealth flows that will influence forthcoming ANDREW HAY projects. If we can be of any further help then *Please refer to the important notice GLOBAL HEAD OF RESIDENTIAL please do contact me, or one of our global team at the end of this report [email protected] whose details are at the back of the report. GLOBAL DEVELOPMENT REPORT 2015
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12 13 14 OVERVIEW 15 16 17 THE PLIMSOLL BUILDING, 18 KINGS CROSS 19 20 21 22 06 12 22 24 23 24 25 GLOBAL ADDING VALUE TO THE TREND MARKET SIZE 26 27 INFLUENCERS DEVELOPMENT CHAIN SETTER & PERFORMANCE Our first annual survey of Knight Frank’s experts Two influential figures We compare the size and key global developments explain how their in the development recent performance of focussing on London, New integrated approach helps world discuss the latest luxury residential markets York and some of the best developers to build the design influences to help developers and developments worldwide most desirable homes, shaping the sector investors make informed while maximising returns decisions as to where future opportunities lie 16 17 07 26 27 THE 10 STEPS TO OCCUPATIONAL LAST CONTACTS MAXIMISING RETURNS DEMAND & INVESTMENT WORD & DEFINITIONS Knight Frank’s A city-by-city look at Two leading property Contact our global development pathway key performance developers in New York residential development highlights the 10 key stages indicators, capital growth, and London share their team to discuss your development consultancy levels of occupancy and views on the key trends and requirements and explore and marketing experts will rental income opportunities in development potential new opportunities split a project into
111 MURRAY STREET, 09 18 NEW YORK FUTURE SUPPLY HOTSPOTS Future gazing: Knight Frank casts light on shifting city development opportunities and highlights those sub- markets that are set to see AT 138% LONDON HAS SEEN THE 138%STRONGEST INCREASE IN PRIME PRICES the largest volume of new OVER A 10-YEAR PERIOD homes delivered
AT 6.1% MIAMI BOASTS THE HIGHEST GROSS RESIDENTIAL YIELD OF ALL EIGHT 6.1% CITIES WE ARE COMPARING IN THIS REPORT GLOBAL DEVELOPMENT REPORT 2015
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22 24 Our first annual survey of key global developments focusses 26 on London and New York, two cities where trends are still set and which act as bellwethers for developers around the world. We also round up some of the best developments in the rest of the world
To gain a global perspective of the new As an island, Manhattan’s key development market we collated the development form has, unsurprisingly, views of Knight Frank’s residential headed upwards, with a number of development teams across our iconic towers on our list. While new global network. development in London has a bias With so many developments coming towards heritage-led or regeneration through that are worthy of inclusion, schemes, it too has a number of high- we have restricted our analysis rise schemes of note. New York is to those developments where not ignoring its heritage either, with construction has only recently been a number of low-rise developments completed, or where completion is sensitively placed in Chelsea and due within the next two years. surrounding districts. Our benchmark was to select In terms of delivery of new product, developments that have been Manhattan has stepped up a gear recognised as “influencers”, whether following a lull in prime development in terms of architecture, design, urban activity at the start of the global planning or service offering. financial crisis in 2008 and 2012. LIAM BAILEY With so many developments from The city currently has 6,500 new GLOBAL HEAD OF RESEARCH New York and London jostling for condo units for sale in more than position, we have dedicated our main 100 buildings across Manhattan. four page spread (overleaf) to these Although this represents a staggering two cities. Fittingly in March this $30bn in inventory it is still 39% year, research in The Wealth Report, below that seen in 2007. produced by Knight Frank, confirmed London is struggling to meet that London is ranked as the leading housing requirements. Official city for the global wealthy, with New forecasts point to a requirement for York set to supplant it by 2024. 50,000 new housing units each year These two cities continue to lead for the coming decade, but current development trends, in terms of delivery is struggling to move above design, pricing and iconic architecture. 30,000 units. For this reason, we have highlighted The quality of development seen key ‘developments of influence’ in Asia and the Middle East is for each and added a number of improving, and future editions of The developments of note from elsewhere Global Development Report will focus around the world. on the key markets in these regions. GLOBALGLOBAL DEVELOPMENT DEVELOPMENT REPORT REPORT 2016 2015 GLOBAL DEVELOPMENT REPORT 2016 G J M P
NAME: NAME: NAME: NAME: 03 MARBLE ARCH PLACE CLARGES MAYFAIR ROYAL WHARF 20 GROSVENOR SQUARE 05 DEVELOPER: DEVELOPER: DEVELOPER: DEVELOPER: ALMACANTAR BRITISH LAND OXLEY & BALLYMORE FINCHATTON 07 LONDON YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: 09 2018 2017 / 2018 2018 2017 / 2018 11
13 DEVELOPMENTS CIRCA 50 RESIDENCES 34 RESIDENCES 2,500 RESIDENCES 36 RESIDENCES 15 H K Q 17 N 19 OF INFLUENCE NAME: NAME: NAME: NAME: 21 CANARY WHARF RESIDENTIAL CAMPDEN HILL THE NOVA BUILDING ONE GROSVENOR SQUARE DEVELOPER: DEVELOPER: DEVELOPER: DEVELOPER: 23 CANARY WHARF GROUP GC CAMPDEN HILL LAND SECURITIES GROSVENOR SQUARE LIMITED 25 The range of current development activity in New areas such as South Bank are now YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: 27 2020+ 2016 / 2017 2016 2019 central London is extraordinary. In several considered part of the prime central areas surrounding the city’s prime locations, London market, due in part to schemes new urban districts are being created, with of the calibre of NEO Bankside and One 2,500+ RESIDENCES 72 RESIDENCES 170 RESIDENCES 41 RESIDENCES the King’s Cross scheme providing a case Tower Bridge; while established markets study in urbanism. Similar hopes are being like Mayfair are being revitalised by I L O R placed on the developments around Nine schemes like Clarges Mayfair and One Elms and Earl’s Court. Grosvenor Square. NAME: NAME: NAME: NAME: ONE BLACKFRIARS CHELSEA BARRACKS NO. 1 PALACE STREET ST. JOHN’S WOOD SQUARE Historic buildings are providing a London’s ability to reinvent itself DEVELOPER: DEVELOPER: DEVELOPER: DEVELOPER: backdrop for sensitive conversions and appears limitless. ST. GEORGE QATARI DIAR NORTHACRE ST. JOHN’S WOOD SQUARE restorations, with The War Office on YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: LTD.*** Whitehall a leading example. 2017 / 2018 2018 2018 YEAR OF COMPLETION: 2019
274 RESIDENCES CIRCA 275 RESIDENCES 72 RESIDENCES 104 RESIDENCES
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NAME: NAME: NAME: EARLS COURT KING’S CROSS SOUTH QUAY PLAZA DEVELOPER: DEVELOPER: DEVELOPER: CAPITAL AND COUNTIES THE KING’S CROSS CENTRAL BERKELEY YEAR OF COMPLETION: LIMITED PARTNERSHIP* YEAR OF COMPLETION: 2016 – 2035 YEAR OF COMPLETION: 2019 / 2020 2020
CIRCA 7,500 RESIDENCES 1,700 RESIDENCES R D 791 RESIDENCES
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NAME: NAME: NAME: ONE KENSINGTON GARDENS BATTERSEA POWER STATION N NEO BANKSIDE DEVELOPER: DEVELOPER: DEVELOPER: DE VERE ESTATES LTD. THE BATTERSEA POWER STATION G NATIVE LAND P YEAR OF COMPLETION: DEVELOPMENT COMPANY** Q YEAR OF COMPLETION: 2015 YEAR OF COMPLETION: 2012 J C 2024 I T H K F O S M 97 RESIDENCES 2,927 RESIDENCES B 217 RESIDENCES
C F L A *Argent (King’s Cross) Ltd., London & NAME: NAME: Continental Railways Ltd., DHL Supply THE OLD WAR OFFICE ONE TOWER BRIDGE E Chain and AustralianSuper DEVELOPER: DEVELOPER: ** SP Setia, Sime Darby and The THE HINDUJA GROUP & OHL BERKELEY Employees’ Pension Fund of Malaysia YEAR OF COMPLETION: YEAR OF COMPLETION: *** Usaha Tegas Group / 2019 / 2020 2017 Visionary Properties
Disclaimer: All data is accurate to the best of our knowledge at the time of N/A RESIDENCES 356 RESIDENCES going to print. Please see full disclaimer on page 27
Source: Knight Frank Research 02
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16 N W 19 OF INFLUENCE S 18 NAME: 20 18R 10 MADISON SQUARE WEST 13 22 DEVELOPER: M N From spectacular trophy assets to new icons One57 has proved the city’s post-recession WITKOFF 5E 24 YEAR OF COMPLETION: Z 26 from the world’s leading architects, New game changer, leading 57th Street’s 2015 York’s prime new developments have grabbed transformation into ‘Billionaire’s Row’ K F headlines around the world in recent years. and Rafael Vinoly’s 432 Park Avenue has T irrevocably changed Manhattan’s skyline. 124 RESIDENCES Our selection of the city’s top influencers U generates a list of superlatives, from the Developments such as 10 Madison Square J O V tallest residential building in the western West have put new neighbourhoods such as hemisphere (432 Park Avenue) to record- NoMad firmly on New York’s prime location NAME: NAME: I breaking sales rates (150 Charles Street) map, whilst Four Seasons Private Residences 53 WEST 53RD STREET, 53W53 2 PARK PLACE, THE WOOLWORTH X D and covers some of the most prestigious are among the new luxury landmarks that have DEVELOPER: TOWER RESIDENCES DEVELOPER: addresses in the city, from Park Avenue, to placed the Financial District sub-market firmly HINES YEAR OF COMPLETION: ALCHEMY PROPERTIES, INC. P G O Central Park and Madison Square Park. on the radar of wealthy buyers. 2019 YEAR OF COMPLETION: 2016
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NAME: NAME: NAME: NAME: NAME: NAME: NAME: NAME: 432 PARK AVENUE 56 LEONARD STREET 30 PARK PLACE, FOUR SEASONS 150 CHARLES STREET 100 BARCLAY STREET, RALPH WALKER 520 WEST 28TH STREET 71 LAIGHT STREET, 111 WEST 57TH STREET DEVELOPER: DEVELOPER: PRIVATE RESIDENCES, NEW YORK DEVELOPER: TRIBECA AT 100 BARCLAY DEVELOPER: THE STERLING MASON DEVELOPER: JDS DEVELOPMENT CIM GROUP & MACKLOWE ALEXICO GROUP & HINES DOWNTOWN WITKOFF DEVELOPER: RELATED COMPANIES DEVELOPER: GROUP & PROPERTY MARKETS GROUP PROPERTIES YEAR OF COMPLETION: DEVELOPER: YEAR OF COMPLETION: MAGNUM REAL ESTATE GROUP YEAR OF COMPLETION: TACONIC INVESTMENT PARTNERS YEAR OF COMPLETION: YEAR OF COMPLETION: 2016 SILVERSTEIN PROPERTIES 2015 & CIM GROUP 2016 YEAR OF COMPLETION: 2018 2015 YEAR OF COMPLETION: 2016 YEAR OF COMPLETION: 2015 2015
102 RESIDENCES 146 RESIDENCES 157 RESIDENCES 90 RESIDENCES 161 RESIDENCES 40 RESIDENCES 33 RESIDENCES 60 RESIDENCES
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NAME: NAME: NAME: NAME: NAME: NAME: NAME: NAME: 157 WEST 57TH STREET, ONE57 212 WEST 18TH STREET, 220 CENTRAL PARK SOUTH 520 PARK AVENUE 20 WEST 53RD STREET, BACCA- 160 LEROY STREET 527 WEST 27TH STREET, JARDIM 215 EAST 19TH STREET, DEVELOPER: WALKER TOWER DEVELOPER: DEVELOPER: RAT HOTEL & RESIDENCES DEVELOPER: DEVELOPER: GRAMERCY SQUARE EXTELL DEVELOPMENT & AABAR DEVELOPER: VORNADO REALTY TRUST ZECKENDORF DEVELOPMENT DEVELOPER: WITKOFF / IAN SCHRAGER / CENTAUR PROPERTIES & DEVELOPER: THE CHETRIT GROUP INVESTMENTS PJS JDS DEVELOPMENT GROUP & YEAR OF COMPLETION: YEAR OF COMPLETION: STARWOOD CAPITAL GROUP VECTOR GROUP GREYSCALE DEVELOPMENT GROUP & CLIPPER EQUITY YEAR OF COMPLETION: PROPERTY MARKETS GROUP 2018 2017 & TRIBECA ASSOCIATES YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: 2013 YEAR OF COMPLETION: 2013 YEAR OF COMPLETION: 2014 2017 2017 2017
94 RESIDENCES 47 RESIDENCES 94 RESIDENCES 32 RESIDENCES 60 RESIDENCES 49 RESIDENCES 36 RESIDENCES 223 RESIDENCES
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NAME: NAME: NAME: NAME: NAME: NAME: NAME: NAME: 11 EAST 68TH STREET, 145 WEST 11TH STREET, 215 CHRYSTIE STREET 23 EAST 22ND STREET, ONE MADISON 551 WEST 21ST STREET, 551W21 36 BLEECKER STREET, 111 MURRAY STREET 550 MADISON AVENUE THE MARQUARD THE GREENWICH LANE DEVELOPER: DEVELOPER: DEVELOPER: THE SCHUMACHER DEVELOPER: DEVELOPER: THE CHETRIT GROUP DEVELOPER: DEVELOPER: RUDIN FAMILY WITKOFF & IAN SCHRAGER RELATED COMPANIES SR CAPITAL (SCOTT RESNICK) DEVELOPER: FISHER BROTHERS & WITKOFF & CLIPPER EQUITY HFZ CAPITAL GROUP & GLOBAL HOLDINGS, INC. YEAR OF COMPLETION: & HFZ CAPITAL GROUP YEAR OF COMPLETION: STILLMAN DEVELOPMENT YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: YEAR OF COMPLETION: 2016 YEAR OF COMPLETION: 2015 INTERNATIONAL 2018 2018 2015 2016 2009 / 2014 YEAR OF COMPLETION: 2015
27 RESIDENCES 193 RESIDENCES 11 RESIDENCES 67 RESIDENCES 44 RESIDENCES 20 RESIDENCES 157 RESIDENCES 113 RESIDENCES
Source: Knight Frank Research, Douglas Elliman/Miller Samuel Inc. GLOBALGLOBAL DEVELOPMENT DEVELOPMENT REPORT REPORT 2016 2015
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Our selection of the 10 top influencers 23 outside London and New York 25 exemplifies some of the ‘best-in- class’ for regeneration (Faena House, 27 Miami), architecture (Shanghai Arch) I and waterfront development (No. One J F D Sydney and The Royal Atlantis Resort and E Residences, Dubai.). G H C A Hong Kong’s Opus, completed in 2012 and designed by Frank Gehry, raised the bar for prime development in Asia and influenced a new generation of luxury developments now evident across the region, most B notably in China and India. Our snapshot is set to expand significantly in the next five years with A B the addition of ambitious projects across emerging centres in Asia, Australia, HONG KONG SYDNEY Russia and the Middle East. NAME: NAME: OPUS ONE SYDNEY, NO.1 ALFRED DEVELOPER: STREET SWIRE PROPERTIES DEVELOPER: YEAR OF COMPLETION: WANDA ONE SYDNEY PTY LTD 2012 YEAR OF COMPLETION: 2021
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DUBAI MONACO SHANGHAI MADRID NAME: NAME: NAME: NAME: THE ROYAL ATLANTIS RESORT TOUR ODEON SHANGHAI ARCH FOUR SEASONS MADRID AND RESIDENCES DEVELOPER: DEVELOPER: DEVELOPER: DEVELOPER: GROUPE MARZOCCO SUN HUNG KAI PROPERTIES GRUPO VILLAR MIR & KERZNER INTERNATIONAL & YEAR OF COMPLETION: YEAR OF COMPLETION: OHL DESARROLLOS INVESTMENT CORPORATION OF DUBAI 2014 2014 YEAR OF COMPLETION: YEAR OF COMPLETION: 2016 2018
230 RESIDENCES 73 RESIDENCES 201 RESIDENCES 28 RESIDENCES
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MIAMI MIAMI VANCOUVER BEIJING NAME: NAME: NAME: NAME: FAENA HOUSE THE SURF CLUB VANCOUVER HOUSE NO.8 ROYAL PARK DEVELOPER: (FOUR SEASONS RESIDENCES) DEVELOPER: DEVELOPER: FAENA GROUP DEVELOPER: WESTBANK HOPSON DEVELOPMENT YEAR OF COMPLETION: FORT CAPITAL YEAR OF COMPLETION: HOLDINGS LIMITED 2017 YEAR OF COMPLETION: 2014 YEAR OF COMPLETION: 2016 2014
47 RESIDENCES 121 RESIDENCES 500 RESIDENCES 500 RESIDENCES
Source: Knight Frank Research GLOBALGLOBAL DEVELOPMENT DEVELOPMENT REPORT REPORT 20162015
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24 25 26 DEVELOPMENT 27 CHAIN SUSAN DE FRAN A IAN MARRIS BY ANDREW SHIRLEY, “The global high-net-worth property “It is created through an PRESIDENT & CEO, DOUGLAS ELLIMAN* HEAD OF GLOBAL DEVELOPMENT REPORT EDITOR buyer has never been more discerning understanding of the layers of detail DEVELOPMENT MARKETING DEVELOPMENT CONSULTANCY or educated, or had more choice,” that comprise luxury accommodation Location, location, location says Ian Marris, who heads up and what are the key areas of focus Knight Frank’s London Residential that drive significant value, and what is the real-estate agent’s Development Team, and has been are the nice-to-have extras that, in mantra, but even the most involved with many of the city’s most reality, don’t. “ sought-after address won’t iconic residential developments. “It is also important to remember DECISIONS MADE AT THE OUTSET guarantee a rush of sales if To attract this kind of buyer, luxury that decisions made at the outset of a project can have a profound impact OF A PROJECT CAN HAVE A PROFOUND the product is wrong. Knight developments clearly need to be best-in-class, but developers further along the chain,” adds Marris. IMPACT FURTHER ALONG THE CHAIN Frank’s integrated approach also need to keep sight of their “Before you do anything else you need helps developers to build the ultimate goal, which, of course, to have a deep understanding of your most desirable homes, while is profit optimisation, not purely target market and and its attitude ” capital receipts. maximising returns towards property,” he says. Given “Understanding value creation is the increasing mobility of wealthy “Approaching the creation of a “While the architectural form of a scheme “Given the broad demographic fundamental to Knight Frank’s role individuals, this will invariably require development from the inside out is is a value driver, equally important is of global buyers, we understand as a development consultant, and we a global approach. very important. Having the right mix that the interior finishes and layouts that today’s ultra-high-net-worth have years of experience at the very top “Knight Frank’s development experts of apartment sizes and understanding are thoughtfully conceived to create individuals are more discerning end of the market,” Marris explains. are often called in to help developers what makes the perfect living space for truly distinctive residences. You need to than ever. They have proven to “Location is indeed a key driver of value, around the world who have a good site your potential buyer is crucial. approach the development of a building the marketplace their willingness however we believe value is created in and some good ideas, but haven’t really “We’ve found that an increasing from the inside out as well as outside in. to pay a premium for outstanding many layers and must be interrogated at considered the tastes and requirements proportion – at least 60 per cent – of “Our integrated approach also architecture and interior design, and every level.” of their potential buyers, and who really the accommodation should be focused includes researching comparable unparalleled services and amenities, want to understand what the very best These layers start from the ‘sense on the principal occupant, with the schemes on a global platform, thereby providing our developers projects are doing to appeal to high- of arrival’ that a development gives master bedroom suite accounting for informing pricing levels for a maximum sales volumes and returns. net-worth individuals. owners or guests, through to internal about a fifth,” says Marris. development. The most significant “It means we can honestly say to spatial arrangement, specification, “We track the leading projects and, New York-based Susan de França, value results from the consultancy potential buyers that the development service and branding of the not only can reference the latest president and CEO of Douglas team working closely together, from isn’t just in a great location, but it residences. “Only where attention approach on amenity and service Elliman Development Marketing, concept to closing,” adds de França. provides the kind of accommodation to detail is given to every single provision, but also, through our sales agrees: “While it is the architect “When we launch a property, and amenities that they are looking for, one of these layers will residential team’s day-to-day interaction, advise that is ultimately responsible for our sales team is confident in the at a price that will enable our developer developments achieve their optimal developers exactly what their target the form of a scheme, we work closely product and understands that there clients to make a good profit.” sale prices,” Marris adds. buyers are prioritising.” with the design team to ensure the has been a distinctive focus on the Creating value through specification, Space planning, for example, may not residential layouts and designs are needs and aspirations of the target for example, is about more than just sound very glamorous, but it is the key informed by the needs and desires of audience throughout the entire SEE OVERLEAF FOR selecting expensive materials, he says. value driver for any new development. the end users. development process. DEVELOPMENT CASE STUDIES
* Knight Frank’s residential alliance partner in the United States GLOBAL DEVELOPMENT REPORT 20152016
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08 09 ALBERTO COSTILLO MERIAM MAKIYA 10 11 MADRID LONDON 12 HEAD OF PRIME RESIDENTIAL PARTNER, RESIDENTIAL DEVELOPMENT 13 14 GLOBAL 15 16 FOUR SEASONS PRIVATE RESIDENCES MADRID CHELSEA BARRACKS, LONDON 17 LUXURIOUS RESIDENCES BY FOUR SEASONS A 13-ACRE QATARI DIAR DEVELOPMENT 18 HOTELS AND RESORTS ABOVE OF 275 APARTMENTS AND 19 A NEW FIVE-STAR HOTEL TOWNHOUSES WITH SEVEN NEW 20 21 GARDEN SQUARES 22 23
24 25 26 INSIGHT Part of the ground-breaking Canalejas Knight Frank has been involved on a 27 mixed-use scheme, this is the first consultancy basis with this development, residential development in Spain which is Qatari Diar’s flaghip UK project, Members of Knight Frank’s with all the services of a five-star hotel since its inception in 2005. Working Residential Development and will appeal to many different closely with the developer and architect nationalities. Our understanding of the we have helped to create a unique teams from around the global super-prime market has been product that is set to deliver exactly world highlight how they crucial in promoting the project and what the market has been looking for – are adding value to projects we introduced the renowned interior a low density development with a large designer Luis Bustamante to create proportion of green space, archetypal layout options with the necessary London architecture and a sense of interior finishes. Placemaking for this community. The interest we have increasingly fashionable location was received so far backs up the success of this an important part of our marketing approach with a significant proportion of
THE FOUR strategy for this exciting luxury enquiries coming from potential buyers SEASONS PRIVATE destination in the historic heart based in the UK and looking to make RESIDENCES, MADRID of Madrid. Chelsea Barracks their primary residence.
SUSAN DE FRAN A MARIA MORRIS MADELAINE LUNDGREN NEAL SROKA RENU BUDHRANI MUDASSIR ZAIDI NEW YORK MIDDLE EAST AND NORTH AFRICA SYDNEY CARIBBEAN HONG KONG INDIA PRESIDENT & CEO, DOUGLAS ELLIMAN* HEAD OF PROJECT MARKETING HEAD OF PROJECT MARKETING DOUGLAS ELLIMAN HEAD OF RESIDENTIAL AGENCY NATIONAL DIRECTOR RESIDENTIAL DEVELOPMENT MARKETING DEVELOPMENT CONSULTANCY
ONE ELEVEN MURRAY STREET THE ROYAL ATLANTIS SUPER-PRIME DEVELOPMENTS MALLIOUHANA, ANGUILLA SUPER-PRIME DEVELOPMENTS IN LODHA WORLD TOWERS, MUMBAI A 64-STOREY GLASS TOWER IN THE TRIBECA RESORT & RESIDENCES, DUBAI IN LONDON AND SYDNEY LIMITED COLLECTION OF BEACH-FRONT HONG KONG AND MAINLAND CHINA THREE UNIQUELY CURVILINEAR GLASS AND AREA OF NEW YORK DESIGNED BY KOHN A KERZNER DEVELOPMENT ON THE PALM WITH VILLAS ON MEAD’S BAY STEEL TOWERS, INCLUDING WORLD ONE, PEDERSEN FOX ASSOCIATES 231 APARTMENTS AND AN 800-KEY HOTEL THE WORLD’S TALLEST RESIDENTIAL THE PALM JUMEIRAH TOWER AT 423M
We meticulously considered the unit The Royal Atlantis will be the first truly Sydney’s residential development sector Malliouhana was recently acquired by The arrival of the Frank Gehry designed We have been using our experience to mix of the development in order to super-prime development in Dubai. The is undergoing a real step change as a huge a Chicago-based developer as a joint 12-storey Opus development in Hong sell this unique 17-acre development on create a diverse range of product across emirate is home to over 200 different influx of funds from Chinese and other venture with Auberge Resorts. After Kong – the architect’s first residential the Golden Mile at Upper Worli, south the building, including placing a series nationalities so our understanding of Asian developers pushes up site values undergoing an $80 million renovation project in Asia – set a new benchmark Mumbai’s most prestigious address, in of larger units on lower levels as a value the global super-prime market has been and brings new products to the market. the strategy was to sell a portion of the for super-prime developments in the a focused manner to domestically and play, as well as premium two-bedrooms crucial. To cater to the tastes of our I have previously worked on some land in a residential offering of beach- region, one that bears comparison with non-resident-based Indians and have on higher floors, allowing us to cater to international high-net-worth clients - of London’s most iconic luxury front villas. Working closely with the global icons like One Hyde Park, and one been among the top-selling partners a broader range of potential purchasers. and incorporating our expertise from the developments, including Chelsea developer and using our expertise, that a leading Chinese developer has just for the Lodha group. Our relationship Throughout the pre-development best-in-class schemes globally - we have Barracks and Southbank Place, with we determined the market was in announced it wants to emulate in Beijing. with Lodha was instrumental in them process, we ensured that 111 Murray worked tirelessly with the developer Qatari Diar, the investment arm of need of a collection of intimate villas, Knight Frank’s extensive experience of using our expertise to help buy the Street would bring a calibre of property to create 65 individual layouts. This in Qatar’s sovereign wealth fund, and a tremendous addition to the hotel selling luxury properties in Hong Kong Canadian High Commission building more typically found in uptown itself has set The Royal Atlantis apart also One Nine Elms for Dalian Wanda, programme. We were an integral part and its extensive portfolio of consultancy at Grosvenor Square, London. Manhattan to Tribeca, to not only meet from other developments by designing China’s largest developer. So I can of the redesign and placement of the work on prime mixed-use projects in but exceed the high expectations of from the inside out - with the focus being see that brand creation and tailoring villas, resulting in a greater return on Mainland China, combined with its uptown buyers looking to relocate. on the quality, high specification and these developments to the needs of investment for the developer. unique global super-prime expertise, attention to detail that will attract buyers the global ultra-high-net-worth buyer provides developers looking to target from all over the globe. ultra-wealthy buyers with a unique *Knight Frank’s residential alliance will become increasingly important as SEE OVERLEAF FOR KNIGHT FRANK'S partner in the United States competition increases. resource to help maximise their returns. 10-STEP DEVELOPMENT PATHWAY GLOBAL DEVELOPMENT REPORT 2015 OCCUPATIONAL By tracking capital growth, levels of 02 occupancy and rental income, investors are 03 04 THE 10 STEPS TO able to gauge their portfolio’s performance. 05 06 DEMAND & 07 08 Below we provide these key indicators on 09 10 MAXIMISING RETURNS INVESTMENT a city-by-city basis 11 12 13
14 15 Creating a development that not only a lot of work will have been done PRIME RENTAL GROWTH 12 MONTHS TO Q1 2015 TYPICAL PRIME GROSS YIELD* Q1 2015 16 Attention to detail at every stage 17 sells well but also makes a good return before an architect or interior 18 19 of the development process helps for its developer doesn’t generally designer even put pen to paper. 20 21 Knight Frank’s consultants build come about by luck, but will be down Much of the development process With capital growth in most 8 Although rental growth in 8 22 23 the best returns for developers to meticulous planning throughout is devoted to rigorous analysis and key markets rising strongly all our markets has been 24 the lifetime of the project. market research into the potential over the past five years, 6 positive over recent years, 6 25 26 The development pathway target audience and pinpointing the but now starting to slow, much stronger capital value 27 4 4 illustrated on this page highlights exact product they are looking to buy investors are focussing more growth has squeezed yields, the 10 key stages Knight Frank’s and what price they are likely to pay. heavily on a development’s 2 meaning investors are 2 development consultancy and Following the development rental performance. In the looking hard at the prospects marketing experts will split a project pathway and getting the concept 12 months to Q1 2015 Los 0 for individual developments 0 into, from concept to sales. Every right from the very beginning of Angeles, Miami, New York to maximise occupancy. stage will have a significant bearing and London were among the -2 -2 the project is therefore crucial for Source: Knight Frank Research, on the overall viability of the scheme. maximising returns. strongest performers, a trend Douglas Elliman/Miller Samuel Inc. -4 -4 Although the internal and external highlighted in our quarterly Prime Global Rental Index. *Based on a 2 bedroom, 2 bathroom apartment look and feel of the development is -6 120 sq m in size in a prime central location -6 what will eventually attract buyers, (excluding Singapore) **Singapore gross yield is based on high-end 2.1% 2.2% 7.3% -4.9% 5.9% 5.9% 4.0% 2.5% 1.4% 6.1% 5.4% 2.9% 2.8% 2.6% 2.3% 3.1%
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| | | | | | | | | | | | | | |
of the overall Singapore non-landed residential
THE VALUE ADD PROCESS *** *** market by average psf transaction prices in 2012 ** (excluding ultra-luxury developments) and located in the Core Central Region 1 2 3 4 Source: Knight Frank Research, Singapore Los Angeles Miami New York Hong Kong Miami Los Angeles Singapore New York Sydney Hong Kong Sydney Douglas Elliman/Miller Samuel Inc. London Dubai ***Hong Kong data relates to a Class E property London Dubai CONCEPT RESEARCH DESIGN PLACEMAKING PHASE & BRIEF FINANCIAL AND BUSINESS SERVICE SECTOR EMPLOYMENT NUMBER OF PERSONS EMPLOYED Land use Market analysis Vision Messaging and promotion One of the key factors CITY 2005 2009 2014 Unit mix Practical experience Objectives Land use integration driving investment is the Context Community Leadership Social responsibility sustainability of tenant demand. As a proxy for this LONDON 1,215,000 1,282,000 1,556,000 10 5 we have collated statistics on business and financial sector SALES PLAN PHASE- employment levels over the past decade, showing the INITIAL NEW YORK 919,700 930,300 1,057,900 relative resilience of each Strategy Schematic testing sector through the global financial crisis. Review PROFITABILITY Building relationships HONG KONG 597,000 684,200 809,400 Pump prime Horizontal v Vertical integration
SINGAPORE† 443,000 645,300 850,000 9 8 7 6
Source: Knight Frank Research, ONS, MARKETING BUILD PLAN PHASE- VIABILITY New York State Department of Labor, Hong Kong Census and Statistics PHASE DETAIL Department, Singapore Ministry of Manpower GREATER SYDNEY 850,000 445,000 445,000 Campaign Structure Innovate Design Deliverability †Numbers indicated reflect the approximate Branding Sustainability Review Phasing number of persons employed in the Business Services, Financial and Insurance Services, and Collateral Scale Deliver Funding Information and Communications sectors as at each year end. DUBAI N/A N/A 43,196 GLOBAL DEVELOPMENT REPORT 2015
02 SYDNEY 03 04 05 06 FUTURE SUPPLY 07 1 BARANGAROO 08 3 & WALSH BAY 09 10 HOTSPOTS 2 CIRCULAR QUAY 11 12 3 MILSONS POINT 13 14 15 Future gazing: Knight Frank casts light 1 2 4 BONDI 16 on shifting city development opportunities 17 18 ALL RESIDENTIAL COMPLETIONS, 19 GREATER SYDNEY** 20 2009 - 2015 21 22 23
24 30,000 25 25,000 26 27 Ascertaining where new development opportunities exist is a challenging 20,000 task when you know a city well, but almost impossible from a distance. 15,000 Using the knowledge and insight of our global research teams, we have 10,000 illustrated over the next few pages those sub-markets within our global 5,000 cities that are set to see some of the strongest levels of new supply. The 0 majority of these areas, from Long Island City in New York to The City 4 Fringe in London are set to see development increase, either as a result KATE EVERETT-ALLEN 2009 2010 2011 2012 2013 2014 2015* of new infrastructure, a change in use from a commercial to a residential HEAD OF INTERNATIONAL bias or because of shifting socio-demographic trends. RESIDENTIAL RESEARCH Source: Knight Frank Research, ABS, Cordell Connect *Estimate
**Data relates to apartments only SINGAPORE
1 DOWNTOWN CORE 5 NOVENA 9 MUSEUM
2 RIVER VALLEY 6 ORCHARD 10 SINGAPORE RIVER 10 3 TANGLIN 7 BUKIT TIMAH
4 ROCHOR 8 NEWTON
8 ALL RESIDENTIAL COMPLETIONS, SINGAPORE 2009 - 2015 9 30,000 25,000 3 20,000 2 15,000 4 1 10,000 ALL RESIDENTIAL COMPLETIONS, 5 5,000 HONG KONG 2009 - 2015 0 8 6 5 30,000 7 7 2009 2010 2011 2012 2013 2014 2015* 25,000 9 20,000 3 15,000 4 HONG KONG 10,000 5,000 1 1 THE PEAK 5 POK FU LAM 9 HO MAN TIN 0
Source: 2 MID-LEVELS EAST 6 SHOUSON HILL 10 SAI KUNG 6 10 Urban Redevelopment Authority & REPULSE BAY *Estimate 3 MID-LEVELS WEST 2009 2010 2011 2012 2013 2014 2015* 2 Completions data = difference between 4 JARDINE’S LOOKOUT 7 STANLEY Source: Hong Kong Rating and the available stock of private residential Valuation Department units (landed and non-landed) as at Q4 8 CLEAR WATER BAY compared with same number as at Q4 of *Estimate the preceding year GLOBAL DEVELOPMENT REPORT 2015
02 03
04 05
06 07 2 1 08 ALL RESIDENTIAL COMPLETIONS, 09 10 DUBAI 11 DUBAI 2009 - 2015 12 13
14 15 1 DUBAI CREEK HARBOUR 16 30,000 3 17 18 2 AREAS SURROUNDING 25,000 19 THE DUBAI WATER 20,000 20 CANAL PROJECT 21 15,000 22 23 3 MOHAMMED BIN RASHID 10,000 24 CITY – DISTRICT ONE 25 5,000 26 27 4 DUBAI HILLS ESTATE 0
4 9
2009 2010 2011 2012 2013 2014 2015* 6
Source: REIDIN, Knight 5 Frank Research *Estimate
ALL RESIDENTIAL COMPLETIONS, 4 GREATER LONDON 3 LONDON 2009 - 2015
30,000 1 ACTON 8 KING’S CROSS 14 CANARY WHARF ESTATE 2 25,000 2 OLD OAK COMMON 9 EUSTON 15 GREENWICH 20,000
3 EARLS COURT 10 CITY FRINGE 16 ROYAL DOCKS 15,000 10,000 4 BAYSWATER 11 DALSTON AND HACKNEY 17 WOOLWICH 5,000 5 NINE ELMS 12 OLYMPIC PARK 0 AND STRATFORD 6 VICTORIA 7
7 MAYFAIR 13 TOTTENHAM HALE 2009 2010 2011 2012 2013 2014 2015* 1 8 Source: DCLG *Estimate
13 NEW YORK
1 FINANCIAL DISTRICT 7 WILLIAMSBURG ALL RESIDENTIAL COMPLETIONS, NEW YORK CITY 11 2 MEATPACKING DISTRICT 8 DUMBO 2009 - 2015 12 8 3 LONG ISLAND CITY 9 EAST OF SECOND 9 AVENUE (NEW SUBWAY) 30,000 4 CHELSEA HIGHLINE 25,000 2 5 HELL’S KITCHEN 20,000 10 15,000 6 W57TH CORRIDOR 1 10,000 16 4 7 5,000 14 0
6 2009 2010 2011 2012 2013 2014 2015* 15 3 17 Source: New York City Department of City Planning *Estimate 5 Figures include Final Certificates of Occupancy and Temporary Certificates of Occupancy GLOBAL DEVELOPMENT REPORT 2015
02 Two influential figures in the be retrofitted to a building at any stage, but 03 04 the more fundamental features have to be 05 06 development world share their views on incorporated into its DNA from the outset. 07 08 Two contrasting buildings that epitomise 09
10 the latest influences shaping the sector this new contract between designer and 11
12 occupier in my hometown of New York are 13 432 Park Avenue and West 57. 14 15 16 As then, the result has been increased 17 18 income disparity and the emergence of a 19 20 globally mobile population of ultra-wealthy ARCHITECTS“ ARE COMING 21 22 individuals. This trend has only been DOWN FROM THEIR 23 exacerbated by the global financial crisis, 24 IVORY TOWERS 25 which, unlike most recessions, squeezed the 26 27 middle and lower classes, while by and large benefiting the wealthy. ” As a result, at the top end of the market, From the outside both are unflinching in while property buyers have never had greater announcing their presence – the Rafael purchasing power, they have also rarely been Vinoly-designed 432 Park is the tallest more aware of the scrutiny to which the so- residential building in the western called “1 per cent” are subjected. hemisphere – but the points where they MARC KUSHNER As a consequence, while the wealthy have not touch human beings have also been stopped consuming luxury goods and services, THE ARCHITECT carefully considered. they are increasingly looking to express their At 432 Park, for example, Vinoly has created wealth and taste in a more subtle and focused a new kind of space with his use of a single way through knowledge and culture. A small Striking architecture and the involvement ROBERT LYLE of a big-name architect have long been used 10ft by 10ft piece of glass in each window painting by a known artist, a simple well- that also doubles as a highly covetable THE LUXURY LIFESTYLE AND tailored suit or a platinum Patek are good to sprinkle some fairy dust over residential seating area. BRAND CONSULTANT examples of items that while superficially development projects, adding status and unostentatious are immediately recognisable sometimes even elevating a building to West 57 is as far from a typical skyscraper to those in the know. icon status. as you can imagine. Designed by the Danish It is easy to default to simplistic buzz words I don’t see this trend changing; if anything, architecture firm Bjarke Ingels Group, it and acronyms when discussing trends in the The same applies to developments. As buyers the role of the architect is becoming an marries the concept of a skyscraper with the super-prime development sector or, indeed, become more sophisticated, they need the ever-more intrinsic part of the marketing European perimeter block model – a ring of any other kind of luxury good for that matter. security of a “starchitect”, or brand, a lot process for new developments, but what I low-density housing around a courtyard. ‘Authentic’, ‘experiential’ and ‘eco-friendly’ less. They are more focused on acquiring see evolving is a far greater regard for the This has formed a new kind of are all current favourites. residences that are at once quintessential of their location – people want to wake up and end user in the design process. democratically shared social space and Financial demographics inevitably map know where they are – impeccably serviced We are starting to see a better balance – dare green sanctuary in the heart of the city. All onto luxury consumption patterns and by and project their own taste. I say it, but architects are coming down from 600 apartments also have bay windows or implication the super-prime development their ivory towers – being struck between balconies allowing their residents access sector. Therefore, in order to obtain a clearer Inevitably, luxury seeks rarity, and in creating a building at a city level – its impact to the outside world in a way not usually picture of where that market is heading, one a globalised world cultural difference on the skyline and its relationship with the associated with this kind of development. needs to understand the socio-economic tides is increasingly scarce. It is therefore buildings around it – to designing something The concepts may sound simple, but and the currents within them that are shaping important for new developments to that adds, at a human scale, a long-term value the ways in which the wealthy consume. preserve, not sweep away, the integrity achieving them in buildings of this scale is and traditions of the local environment, and amenity for its users. incredibly complex. community and lifestyle. This value is ultimately, I think, greater Of course these broad tides and currents for the resident than more lifestyle MARC KUSHNER IS CO-FOUNDER OF LUXURY SEEKS“ RARITY, combine and interact with local eddies in amenities such as spas and butlers, highly ARCHITECTURE FIRM HOLLWICH KUSHNER AND IN A GLOBALISED WORLD different locations. However, it has never desirable though they may be. These can AND CEO OF ARCHITIZER.COM CULTURAL DIFFERENCE been more important, or more difficult, IS INCREASINGLY SCARCE for developers to understand the changing dynamics and motivations of their buyers ” and to develop subtle and nuanced products Since the fall of Berlin Wall in 1989, which and associated narratives to appeal to them. broadly coincided with the advent of the internet, we have seen wealth creation on a scale unparalleled since the era of colonialism and the Industrial Revolution. ROBERT LYLE IS CHAIRMAN OF PRCO TREND SETTER GLOBAL DEVELOPMENT REPORT 2015 TYPICAL PRICE BANDS Q1 2015
By gauging the size and recent performance Hong Kong, London and New TYPICAL PRIME PRICE BAND (US$/SQ FT) TYPICAL SUPER-PRIME PRICE BAND (US$/SQ FT) 02 03 MARKET SIZE of luxury residential markets, developers York stand apart from the 04 05 and investors can make informed decisions other cities when it comes 06 07 as to where future opportunities lie to luxury prices. At the super- 08 & PERFORMANCE prime level, however, Miami 09 10 8,000 8,000 11
is starting to erode their lead 6,000 - 7,300
12 NUMBER OF SALES BY PRICE BRACKET 2009 V 2014 with values now nudging | 13 14 US$3,300 per sq ft. 15 5,500 - 6,500
|
7,000 7,000 New York 16 London’s prime market 2009 2009 17
18 stands out both in terms 2014 2014 19 London 20 of the volume of prime 21 6,250
|
sales and the scale of its 6,000 6,000 4,300 - 5,200
22 23 | expansion since 2009. Hong 7,000 7,000 24 25
Kong and Singapore are London 26 27 the only two cities to have 6,000 6,000 5,000 5,000 seen their prime markets Hong Kong 3,100 - 3,800 3,100
(US$2m-US$5m) shrink, |
2,600 - 3,200
5,000 5,000
an impact of the stringent 2,600 - 3,200 |
4,000 4,000 cooling measures imposed | London 2,700 - 3,300 2,600 - 3,100
2,721 since late-2009. | | 4,000 2,498 4,000
| 2,287 | New York Hong Kong 2,000 - 2,400
2,000 - 2,400
Miami | | |
3,000 3,000 Sydney 2,147 1,766
| 1,888 1,400 - 1,700
1,455 |
3,000 3,000 Manhattan | 1,638
| Sydney 1,300 - 1,500
Hong Kong
| | | Singapore
Hong Kong Source: Knight Frank Research 1,177 London
674 796 596 2,000 2,000 Sydney
|
| 476 2,000 Manhattan 2,000 388 | Singapore
Notes: Exchange rates calculated as at London 800 - 1,000
|
523 | | 107 74 31 December 2009 and 2014 Singapore*
800 - 1,000 |
600 - 700 258 | 257 | Los Angeles Sydney Source:
Knight Frank Research, 151 | |
|
Dubai: Due to data availability, Dubai 46 55 | Douglas Elliman/Miller Samuel Inc. 12
| | Miami Los Angeles | 800 - 1,000
figures for 2009 correspond to 2010, 1,000 Manhattan 1,000
Singapore* 1,000 1,000 | Hong Kong Dubai | Manhattan: Condo and Coop sales only | London Dubai Manhattan
Hong Kong Notes: Price data for Singapore Dubai Sydney Sydney
*Singapore: Sales volumes are based on Singapore* corresponds to apartment and
Singapore* Dubai Dubai Dubai the total number of caveats lodged for 0 0 condominium housing only in the CCR. island-wide private non-landed residential US$2M-US$5M US$5M+ Price data for Hong Kong and Sydney units: new sale, resale and subsale. corresponds to apartments only. 0 0
PRIME PRICE GROWTH Q1 2015
Cities such as London, 10 YEAR 5 YEAR 1 YEAR NEGATIVE 1 YEAR PRICE GROWTH Singapore, Hong Kong, and to some extent New LONDON NEW YORK MIAMI LOS ANGELES DUBAI SINGAPORE SYDNEY HONG KONG York, provide a picture of 150% uniformity with bubbles growing in size and evenly spaced, suggesting an 120% N/A 93% incremental pace of growth 91% over the last 10 years. For 78% 90% Miami, hit hard post-2008, 138% 68% 69% its five-year performance 53% exceeds its 10-year 60% 45% equivalent. One to watch is Sydney which has recorded 25% 40% 17% the same level of price 30% 45% 7% growth (7%) over the last 42% 7% 12 months as it has over the 0% past five years. 12% 3% 8% -1% 7% 6% -6% -4%
Source: Knight Frank Research, -30% Douglas Elliman/Miller Samuel Inc.
Notes: Price data for Singapore corresponds to apartment and condominium housing only in the CCR. Price data for Hong Kong and Sydney corresponds to apartments only. GLOBAL DEVELOPMENT REPORT 2015
02
04 CONTACTS
06 EUROPE, US AND CARIBBEAN MIDDLE EAST 08 PADDY DRING MARIA MORRIS 10 LAST Head of International Residential Head of Project Marketing 12 NEW YORK +44 20 7861 1061 +971 4426 7639 14 RICHARD WALLGREN IS EXECUTIVE VICE [email protected] [email protected] 16 PRESIDENT OF SALES AND MARKETING AT MACKLOWE PROPERTIES 18 WORD UK ASIA PACIFIC 20 LONDON JUSTIN GAZE SARAH HARDING 22 ALASDAIR NICHOLLS IS CO-FOUNDER Joint Head of Residential Development 24 With New York and London providing our central Head of Residential Asia Pacific AND CHIEF EXECUTIVE OF NATIVE LAND +44 20 7861 5407 +65 6429 3580 26 focus for this edition of the Global Development [email protected] [email protected] Report, we asked two leading developers to share their thoughts on these critical markets IAN MARRIS PRESS ENQUIRIES Joint Head of Residential Development [email protected]
+44 20 7861 5404 To view our global selection of new homes for sale visit [email protected] www.knightfrank.com Where or what is the next big What is the biggest challenge to Are there any particular new trends opportunity area? development profitability? that we’ll be seeing in developments Richard Wallgren: Midtown continues Richard Wallgren: Increased cost over the next five years? to develop new product along 57th of land and the shortage of qualified Richard Wallgren: I think there will be Street, Central Park South and eastward labour supply, which is pushing less speculation in the luxury market; DEFINITIONS AND ACKNOWLEDGEMENTS along Lexington and Third Avenues. In construction costs higher. The buyers are increasingly looking for addition FIDI (the Financial District) reliance on very wealthy international homes. The attractions of New York, GLOBAL DEVELOPMENT is seeing significant growth with the buyers may be waning due to global security, stability and economic growth REVIEW 2015 opening of the new World Trade Center. economic and political uncertainty. will act to draw in demand. COMMISSIONED BY EDITOR DEFINITIONS There is a huge The issue is Alasdair Nicholls: Alasdair Nicholls: Alasdair Nicholls: One of the biggest Andrew Hay Andrew Shirley amount of opportunity for developers threefold – price resilience following shifts we have seen is the rise in demand PRIME PROPERTY who work to create a sense of place in strong performance since 2009, for fully serviced developments. WRITTEN BY London, which is still a city of villages. build costs, and increasingly delays Older occupiers in particular are RESEARCH The most desirable and Knight Frank Delivering schemes that enhance these to delivery - whether planning or the moving to live more centrally and Liam Bailey most expensive property Research unique urban building blocks should be capacity of the construction sector. are more footloose. They appreciate Kate Everett-Allen in a given location, a real focus for the industry. the management and service that is generally defined as the PUBLISHED BY MARKETING top 5% of each market When creating a new project where increasingly embedded into schemes. Raconteur Jenny Stokes by value. Prime markets With more projects coming on do you look to for inspiration? often have a significant stream, how can developers Which of your projects have you ILLUSTRATIONS Richard Wallgren: Manhattan has DESIGN BY international bias differentiate their product? found the most rewarding? Sara Stode been the home of luxury apartments The Surgery in terms of buyer profile. Richard Wallgren: Quality of design for over a century. We carefully study Richard Wallgren: My career has PRINTED BY is of paramount importance. Also successes from the past. For instance, evolved as the market has changed; I Pureprint Group sensitivity to unit mix is critical to at 432 Park Avenue, we analysed the have enjoyed all of them. Each project appeal to a broad base of consumer layouts of apartment houses along Park has had a different flavour: from the requirements, with a trend in favour of Avenue and Fifth Avenue that were Time Warner Center, a major urban smaller units in some new projects. designed by Rosario Candela. renewal project, bold and multi-purpose Alasdair Nicholls: The main challenge Alasdair Nicholls: We look across oriented; through to 432 Park Avenue, a IMPORTANT NOTICE is in the big set-piece regeneration the development sector, best-in- crisp modern design by Rafael Vinoly. zones in London. These are critical class examples in the hotel and office Alasdair Nicholls: Every scheme we ©Knight Frank LLP 2015 – This Report is not necessarily represent the view of Knight Frank to get right to ensure we deliver the sectors, as well as residential. The have taken on starts with a simple published for general information only and LLP in relation to particular properties or projects, housing we need. Examples like Earls world’s gateway cities like New York question – would we live here? If not, not to be relied upon in any way. Although high Reproduction of this report in whole or in part is not Court and Southbank Place (former are important, but there is a lot to learn we don’t do it. For that reason it is standards have been used in the preparation of allowed without prior written approval of Knight Shell Centre) show how a visionary from the quiet, efficient, human-scale difficult to pick favourites from award- the information, analysis, views and projections Frank LLP to the form and content within which masterplan can aid this process. European urbanism. winning schemes likes NEO Bankside presented in this report, no responsibility or liability it appears. Knight Frank LLP is a limited liability to smaller more bespoke schemes like whatsoever can be accepted by Knight Frank LLP partnership registered in England with registered Bishop’s Square. The opportunity to for any loss or damage resultant from any use of, number OC305934. Our registered office is 55 Baker add something of quality to London’s reliance on or reference to the contents of this Street, London, W1U 8AN, where you may look at a fabric is the real reward. document. As a general report, this material does list of members’ names. GLOBAL DEVELOPMENT REPORT 2016
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