W2 in focus Park-view premiums Outlook Focus on: W2 2021 knightfrank.com/research FOCUS ON: W2 FOCUS ON: W2 NORTHERN PROMISE by schemes such as One Hyde Park and With easy access into the West End at Paddington from late 2021, the Bordered by Notting Hill, Kensington Gardens and Marylebone, and with One Kensington Gardens. Kensington and the City via tube, and a short walk spotlight is on W2 now more than ever. significant funding committed to landmark regeneration served by a new Palace Gardens, one of London’s best- from the new Elizabeth Line service Elizabeth Line, W2 is a prime central London neighbourhood to watch. known addresses, lies to the west of the park. Yet W2, the postcode with the MAP 1: AVERAGE SOLD PRICES SURROUNDING HYDE PARK longest park frontage, does not seem to 2020 ituated between the prime Similarly Queensway, an historic have capitalised on this. S residential markets of Kensington, shopping parade that runs through the Our analysis shows that average sales Notting Hill and Marylebone and area as its central spine, has retail units prices in W2 stood at just over £1 million HYDE PARK ESTATE Bond Street Marble Arch W located on the edge of Hyde Park, W2 with rents at a fraction of prime West End in 2020, some 22% lower than average NOTTING HILL Bayswater Lancaster occupies an enviable position in prime shopping streets just over a mile away. values in neighbouring Notting Hill, and Gate central London. However, over the next few years this more than 70% lower than in Kensington Queensway MAYFAIR Notting Yet this district, which includes looks set to change. The emergence of a The emergence of a and Knightsbridge, the other park- Hill Gate Bayswater, Paddington and Queensway, handful of new landmark developments, “ adjacent neighbourhoods. handful of landmark HYDE PARK has historically been overlooked as well as the wider regeneration of Given the expected increased compared to its neighbours. The presence Queensway, will transform the area with developments as well as emphasis on access to gardens or green of a mainline rail station at Paddington new homes, hotels, restaurants, retail and the wider regeneration of space post-pandemic from buyers (fig. Hyde Park Corner has, as is often the case, contributed to public spaces. Queensway will transform 1), particularly those in urban settings, KENSINGTON Knightsbridge the fact that many period residential Meanwhile, improving transport links W2 is well positioned to benefit. Indeed, High Street the area. The spotlight is Kensington properties in W2 were converted to hotels at nearby Paddington will make the area Notting Hill and Bayswater have been KNIGHTSBRIDGE in the last century. even more accessible. on W2 now more than ever among some of the stronger performing LOWER Contain BELGRAVIA central London markets through the OS data pandemic thanks to a combination of FIG 1. THE GROWING APPEAL OF PARKS AND GREEN SPACES HIGHER When choosing a new home which attributes are most important? good local amenity, access to green space and walkability. Source: Land Registry/LonRes 62% 51% 43% 40% 40% 31% 30% Outdoor Amenities Access Transport Internet Air Quality Offices within space/ within to quality links connectivity/ the home/ proximity to the home/ healthcare technology development green space development Despite sharing the stucco fronted Victorian part of the Bayswater jigsaw and one that will architecture of Belgravia, facing south onto link the vibrancy of Notting Hill to Marylebone Kensington Gardens and being walking and Mayfair. Another factor underpinning the distance from Marylebone, Mayfair, Kensington, London has always been an attractive appeal of W2 lies in its relative value given Notting Hill and Knightsbridge, it has always destination for global investors and 25% ALEXANDER LEWIS, been viewed as the good value option. For price growth is forecast over the next five its prime central location (map. 1), as well Knight Frank Residential as its park-side position with south-facing Development Consultancy decades, those in the know have bought in years. Those looking for outperformance will views over Kensington Gardens. Bayswater taking advantage of super-prime be targeting Bayswater. Indeed, W2 remains relatively accommodation for prime prices. This was THE INSIDE VIEW overlooked given that some of London’s largely down to the proliferation of tourist hotels best-known addresses and new The advancement and redefinition of and the absence of any cohesive retail provision. developments surround the perimeter Bayswater has been discussed and Today, the budget hotels are all but of London’s Hyde Park, arguably the tentatively explored for as long as I can gone, converted into luxury apartments. Those looking epicentre of the prime central London remember. It is an area of London that And finally, the much talked of re-imagination “ for outperformance Knight Frank has always championed having and development of Queensway is underway led residential market will be targeting Parkside locations have long been opened its Hyde Park office on Craven by the Queensway Joint Steering Committee. It target locations for developers, evidenced Terrace in 2011. is really happening. This is the linchpin. The final Bayswater Source: Knight Frank Wealth Report 2021 2 3 FOCUS ON: W2 FOCUS ON: W2 Bayswater. Of the 550 units in the On top of this public realm The overhaul of this historic Victorian ALL CHANGE Bayswater pipeline, 70% are focussed improvement, five key developments mall designed by Foster + Partners is set on Queensway, and have the potential are proposed for the street. Park Modern to complete in 2023. The Whiteley will to re-position Bayswater in line with its (Fenton Whelan/Cheyne Capital), the comprise 1 million square feet of mixed- neighbouring districts. redevelopment of South Queensway use development within a restored Grade (Bourne Capital), a new plaza at Princes II listed building comprising 139 flats, 20 Prime regeneration Court (Bourne Capital), a new retail parade shops and restaurants, a cinema, gym and a W2 is undergoing a significant revival thanks to a strong development at North Queensway (GMS Estates) and Six Senses hotel with 110 rooms. pipeline, which includes a handful of landmark schemes, as well as The evolution of Notting Hill into a the comprehensive redevelopment of The masterplan of the streetscape has the arrival of the Elizabeth Line at nearby Paddington. London district with global appeal has Whiteleys (Finchatton/CC Land/MARK). been designed by Burns and Nice, architects spread to neighbouring Bayswater, notably This group meets as the Queensway Joint behind Exhibition Road and Mount Street along Westbourne Grove which has been Steering Committee to ensure coordination and will link the separate initiatives. transformed into an eclectic stretch of across their respective schemes. nce the new rail line is fully at Paddington. The area also has buyers, is more prevalent in the new shopping boutiques and restaurants. The south end of Queensway at the operational, the area is expected numerous cycle paths across Hyde Park homes market. O Central to the regeneration of entrance to the park will be bookended by to become one of the capital’s major and Kensington Gardens and is walking Little surprise, then, that development Bayswater will be Queensway with Park Modern, where work is underway to transport hubs with new direct fast links distance from Kensington, Notting Hill, volumes are rising. There are 1,300 units plans underway to turn the street into a construct over 50 apartments overlooking to Heathrow Airport, the West End, the Marylebone and Mayfair. identified in the pipeline for W2, though destination retail location. At the heart the park, opposite the new entrance to City and Canary Wharf. Consequently, there has always 60% of these are focussed on Paddington Schemes to date of this regeneration lies Westminster Kensington Gardens. This project will mark But while improving transport been a strong depth of demand for regeneration typically trading below “ City Council’s regeneration of the the gateway of “Bayswater Village”, the have largely been connections nearby are playing a part in homes in the area, from both domestic £1,500 psf. public areas. This recognises the need name given by Westminster City Council small scale period hotel the regeneration story, W2 has always and international buyers and tenants. In Bayswater, with the exception of the to improve the pedestrian experience to the overall initiative, as well as creating been well connected, attracting residents Knight Frank data shows UK buyers Lancasters, schemes to date have largely or office conversions. on Queensway through widening the a new Royal Gateway into Kensington drawn to good housing stock close to have made up more than 70% of the been small scale period hotel or office Park Modern and the pavements, reducing the impact of traffic Gardens working with the Royal Parks. transport hubs. overall sales market in Hyde Park and conversions with a £psqft value of between and improving the public realm through Of the eight retail parades on Whiteley will re-position W2 has five underground stations, Notting Hill over the last five years (fig. £1,750 to £2,000. improved lighting and landscaping. Queensway, five will be comprehensively including a Central Line service into 2), but international demand including However, there is strong pipeline of Bayswater in line with its This will be funded through the S.106 regenerated and re-let, altering the retail the City, and one National Rail service European, Asian, US and Middle Eastern new development now taking place within neighbouring districts contributions of development in the tone of the street. area and includes the creation of a new This regeneration will be book ended gateway into the park. A sum of c.£13m at the north end of the street by the £1.5 FIG 2.