London residential The proximity premium London Residential 2–3 The proximity premium
The proximity premium
Every home buyer is Our clients have wide ranging demands The highest premium occurred for properties when it comes to buying a home. Whether it close to hotels. Our analysis included unique. Each has their be to live in or as a rental investment, our Claridge’s, the Dorchester and The Ritz. buyers often have a clear idea of where they The average prices of properties within own motivation and want to buy; geographical location is 500 metres of hotels was £3.2 million, important. And this can impact on the price, more than double the borough average of preferences, one might with higher prices in the prime areas of £1.68 million. Proximity to well known Knightsbridge and Mayfair. However, even department stores, such as Harrods and like to live close to a within areas prices vary. Harvey Nichols, also added nearly double to property values. Being within 500 metres university, for others To determine whether the price varies of a world class university adds around depending on the local amenity offer, we 25% to property values. restaurants may be have identified the average price of properties in central London within 500 key. But whatever the metres of an amenity, such as a university, Michelin starred restaurant, hotel or motivation, this is well-known department store. We compared this with wider borough prices to identify reflected in the price; any price differential (see the back page for a fuller description of our methodology). properties in central Our research shows that living close to amenities can add around 50% to central London close to world London property prices. class amenities achieve a 52% price Table 1. Price premium for properties close to amenities Map 1. Central London amenities analysed in CBRE’s research premium. 500 metre radius Borough average City, University % Uplift of London average price price UCL Department stores £3,226,916 £1,759,570 83% Spitalfields FITZROVIA Market Hotels £3,106,509 £1,681,586 85% MARYLEBONE British Museum Barbican The Langham Sir John Soane’s Whitechapel Museum Restaurants £2,893,142 £1,680,406 72% University of Hakkasan Gallery PADDINGTON Westminster M&S Royal Palace LSE London Palladium Opera Selfridges Theatre House Universities £1,850,369 £1,478,673 25% Liberty The Ivy CITY OF Fenwicks SOHO Claridges Sketch Covent LONDON 30 St Mary Garden Queen’s King’s College London Axe Theatres £2,033,864 £1,489,960 37% MAYFAIR Umu Theatre The Savoy Le Gavroche Somerset House Hakkasan Royal Academy The Connaught The Globe of Arts London Savoy Theatre Theatre Coliseum Museums £1,996,004 £1,456,624 37% The Greenhouse Fortnum & Mason BFI Borough Hay’s Tate Modern Market Galleria The Dorchester National Hyde Park The Ritz Royal Theatre Retail £2,095,563 £1,410,035 49% Nobu Festival Hall Dinner by The Shard Heston Tower Blumenthal The Lanesborough Bridge Royal Albert Mandarin Hall Oriental SOUTHWARK Source: Land Registry Marcus London Imperial College Harvey Nichols Eye Buckingham Big Ben Harrods Palace Science Museum BELGRAVIA White Cube V&A Museum The Goring WESTMINSTER Natural History Museum Imperial War Museum WESTMINSTER Bibendum
Saatchi Gallery Tate Britain
VAUXHALL Gordon Ramsay This map does not contain all the amenities in central London, please refer to methodology on the back page. London Residential 4–5 The proximity premium
Department Hotels
stores Proximity price
Proximity price £3,106,509 £3,226,916 Wider borough price Wider borough price £1,681,586 £1,759,570 Proximity premium Proximity premium 85% 83% The Goring is famous as the hotel where Kate Middleton The founder of Liberty’s, one stayed the night before her of London’s most well known wedding to Prince William. department stores, once It is the only hotel in the stated “I was determined not world to be granted a Royal to follow exciting fashion, but Warrant of appointment to to create new ones.” HM The Queen.
Spitalfields FITZROVIA Market FITZROVIA MARYLEBONE MARYLEBONE The Langham
PADDINGTON M&S PADDINGTON Selfridges Fenwicks CITY OF CITY OF SOHO Claridges SOHO Liberty LONDON 30 St Mary LONDON 30 St Mary Axe Axe MAYFAIR Covent MAYFAIR Garden The Connaught The Savoy Fortnum & Mason Borough Hay’s Market Galleria The Dorchester Hyde Park Hyde Park The Ritz The Shard The Shard Tower Tower Bridge The Lanesborough Bridge Harvey Nichols SOUTHWARK SOUTHWARK London Eye Mandarin London Eye Oriental Buckingham Big Ben Buckingham Big Ben Harrods Palace Palace BELGRAVIA BELGRAVIA WESTMINSTER The Goring WESTMINSTER
WESTMINSTER WESTMINSTER
VAUXHALL VAUXHALL London Residential 6–7 The proximity premium
Restaurants Universities
Proximity price Proximity price £2,893,142 £1,850,369 Wider borough price Wider borough price £1,680,406 £1,478,673 Proximity premium Proximity premium 72% 25%
According to the QS World University rankings, There are 72 Michelin star London has 2 of the top restaurants in London. universities in the World.
City, University of London
UCL
FITZROVIA FITZROVIA MARYLEBONE MARYLEBONE
Hakkasan PADDINGTON PADDINGTON University of Sketch Westminster CITY OF LSE CITY OF Umu SOHO SOHO LONDON 30 St Mary LONDON 30 St Mary The Ivy Axe Axe MAYFAIR MAYFAIR Le Gavroche King’s College Hakkasan London
The Greenhouse Hyde Park Hyde Park Nobu The Shard The Shard Dinner by Heston Tower Tower Blumenthal Bridge Bridge SOUTHWARK SOUTHWARK Marcus London Eye London Eye Buckingham Big Ben Buckingham Big Ben Palace Palace Imperial College BELGRAVIA BELGRAVIA WESTMINSTER WESTMINSTER
WESTMINSTER WESTMINSTER Bibendum
VAUXHALL VAUXHALL Gordon Ramsay London Residential 8–9 The proximity premium
Theatres Museums
Proximity price Proximity price £2,033,864 £1,996,004 Wider borough price Wider borough price £1,489,960 £1,456,624 Proximity premium Proximity premium 37% 37%
Agatha Christie’s ‘The There are 215 museums in Mousetrap’ is London’s London. The British longest running show, Museum, which opened in so far it has been performed 1759, is London’s most for 61 years. visited museum.
FITZROVIA FITZROVIA MARYLEBONE MARYLEBONE British Museum Barbican
Whitechapel Sir John Soane’s Gallery Museum PADDINGTON London Palladium Royal PADDINGTON Palace Opera Theatre House CITY OF CITY OF SOHO SOHO LONDON 30 St Mary LONDON 30 St Mary Queen’s Axe Axe MAYFAIR Theatre MAYFAIR
The Globe Somerset House London Savoy Theatre Theatre Coliseum Royal Academy BFI of Arts Tate Modern National Hyde Park Royal Theatre Hyde Park Festival Hall The Shard The Shard Tower Tower Bridge Bridge SOUTHWARK SOUTHWARK London Eye Royal Albert Hall London Eye Buckingham Big Ben Buckingham Big Ben Palace Science Museum Palace BELGRAVIA V&A Museum BELGRAVIA White Cube WESTMINSTER WESTMINSTER Natural History Museum Imperial War Museum WESTMINSTER WESTMINSTER
Saatchi Gallery Tate Britain
VAUXHALL VAUXHALL Contact Jennet Siebrits David Chapman Head of Residential Research Analyst +44 20 7182 2066 +44 20 7182 8047 [email protected] [email protected]
Methodology In this research we compared the average price of all residential property transactions within 500 metres of an amenity with the average price in the borough in which the amenity is located. The analysis is based on over 16,400 records from Land Registry data for the year up to October 2017. The analysis excluded areas where there were fewer than 20 transactions.
The amenities were selected to reflect London’s most iconic and recognisable global attractions. This was based on the recommendations of a variety of travel and destination experts. The source used were: www.londontheatre.co.uk/ theatres; www.visitlondon.com/things-to-do/sightseeing/london-attraction/museum/top-museums-and-galleries- london; www.telegraph.co.uk/travel/destinations/europe/united-kingdom/england/london/articles/top-10-the-best- luxury-hotels-in-london; www.telegraph.co.uk/travel/destinations/europe/united-kingdom/england/london/hotels; www. visitlondon.com/things-to-do/shopping/department-store/top-10-london-department-stores; www.timeout.com/london/ restaurants/michelin-star-restaurants-in-london; www.gq-magazine.co.uk/article/most-luxurious-restaurants-london; www.visitbritainshop.com/world/articles/london-insider-market-guide/; and the 2015-2016 HESA Student Survey.
While the list is not fully exhaustive, it is meant to represent London’s top cultural attractions and very best amenities.
Research To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at: www.cbre.com/researchgateway.
For residential research please visit: www.cbreresidential.com/uk/en-GB/research
Photography P2: dutourdumonde / depositphotos.com. P4: AlenaKr / depositphotos.com. P5: Dutourdumonde Photography / Shutterstock.com. P7: pxl.store / depositphotos.com. P8: Bikeworldtravel / Shutterstock.com. P9: lucidwaters / depositphotos.com.
Published November 2017
Disclaimer CBRE Limited confirms that information contained herein, including projections, has been obtained from sources 2017 CBRE believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. ©2017 CBRE Ltd.