Residential Towers Research Sky High Living 1 2 Content Foreword 5 Introduction 6 1.History of the residential tower 7 2.The luxury residential tower pipeline 8 3. Case Study - The impact of luxury residential 14 towers on local price values 4. The impact at ground level - How do luxury 16 residential towers impact the local street scene? 5. Case studies 18 6. Selling a tower 21 Summary and conclusion 22 Foreword Typically the most iconic, most recognisable skyscrapers that provide hundreds of homes in a built buildings of any city are skyscrapers. The human up city can have such a positive impact on the local race has always been obsessed with building the community and its wider surroundings. biggest, most iconic buildings, from the Ziggurats of the Sumerian empire to the modern glass clad towers The purpose of the skyscraper is steadily changing, soaring above the clouds. from shows of wealth and decadence, to luxury office space to now beautiful buildings offering high-quality The impact these towers have is not only on the skyline housing, providing a fantastic quality of life. but also on the community at ground level. It is impor- tant that such important buildings are designed with the Daniel Libeskind people of their surroundings at heart, to appeal to the community, as well as to those just passing by. It is important to make a building stand out by giving it heart, it’s not enough to just design a nice looking structure, it has to have something compelling. The design must tell a story and the purpose must serve the wider population. Constructing tall, well-designed Manhattan, New York, USA 5 Introduction Residential towers can dramatically transform city centre, as well as affluent locals. Buyers benefit the landscape they occupy. Their sheer visibility and from both luxury and convenience and whether the iconic new architecture helps them generate unique investment is for their own use or for buy-to-let purposes, identities as landmark buildings and stand out from owners expect to capitalise on rising values. the rest of the market. The towers are typically built in prime locations that The towers are typically are in high demand, but with limited development built in prime locations potential. that are in high Needing to soar above 350 feet tall, residential demand, but with limited towers provide the opportunity for developers to bring multiple new homes to the market that have a development potential. consistent level of high quality delivery, with services and amenity provision that can benefit both residents This report explores the growing trend for high- and the wider public. rise luxury living and examines the impact of these buildings on local property prices and how they The high-end specifications and services on offer shape the areas around them, taking a close look appeal to wealthy individuals who seek sound at London, New York, Dubai and Warsaw, four key investments in prime property. They include international areas of residential growth (Figure 1). business people who require a bolthole in a dynamic Figure 1 London Warsaw Dubai New York 6 1.History of the residential tower The first skyscrapers appeared in America in constructing numerous residential and commercial the late nineteenth and early twentieth centuries, skyscrapers in response to its booming economy and developed as office blocks symbolising the wealth burgeoning property market. and increasing business operations of some of the countries most established corporations. The world’s Currently all four cities are playing a major part in first skyscraper was the now dwarfed ten-storey the future of skyscraper construction, with each city Home Insurance Building in Chicago, constructed boasting incredible towers making their mark on the in 1885. world horizon. New York currently hosts the world’s tallest purely residential tower in the 1,396 feet (ft) In the past, the main use for skyscrapers was to 432 Park Avenue, with Warsaw, Poland, boasting provide infinite office space in exclusive business the tallest in Europe through the 629ft Zlota 44. The districts across the world, with some of the most famous tallest building in the world is presently the 2,720ft including the Empire State Building, Chicago’s Willis Burj Khalifa in Dubai. Tower and One Canada Square, London. However, over the past fifteen years, as landmass has depleted, Burj Khalifa, Dubai, UAE developers have begun to see the benefit producing purely residential towers as a means of providing appropriate housing en mass. In major cities where a finite amount of land and a rising population have combined to make vertical living a common reality. This has seen the race to build taller, grander homes heat up. For every residential tower that is constructed, another much taller tower with more storeys and improved amenities enters the approval process. However, over the past fifteen years, as landmass has depleted, developers have begun to see the benefit producing purely residential towers as a means of providing appropriate housing en mass. The trend for sky high homes has different benefits in various cities; developers in London and New York build up as decreasing land mass and tighter planning rules restrict increasing city boundaries; Dubai developers favor tall buildings to increase the land efficiency of a man-made city, whilst Poland is 7 2.The luxury residential tower pipeline The building of mixed-use skyscrapers and or already under construction, according to a survey dedicated residential towers is constantly rising, by New London Architecture (NLA). This is a sharp with the world now home to 1,040 tall buildings, an increase from the 10 residential towers completed in increase of almost 300% since 2000. The benefits the city since 2000. of these sky high constructions is clear as new towers become landmarks, transforming the physical landscape in which they are present, as well as London is set to become the bringing new, high quality homes to an area, which first European city to reach in turn can have a clear impact on property values. 10 million residents by 2030 Taking a look at the four key areas of study –London, New York, Dubai and Warsaw – this section analyses The majority of London’s latest residential towers are the luxury residential towers in the pipeline for each situated along the River Thames, with developers area. aware of the price premiums achievable through good views of the city, which is beginning to Unlike New York and Dubai, London has historically prove more popular than location. In London high been a city famed for its low-built properties, with level views can add up to 31% to property prices, the city growing out rather than up. However, with as buyers are willing to pay extra for a view of available land sharply decreasing and the city’s the capital; a river view can add 9% to the value population growing year-on-year (London is set to compared to other identical properties in a new become the first European city to reach 10 million development. residents by 2030) planners and developers are beginning to turn to luxury residential towers to help In recent years New York has slowed its skyscraper alleviate a housing crisis. production, with a rise in commercial and industrial building conversions to residential use high on Across London as a whole there are currently 189 developers’ priority lists. However, in 2014 there were new residential towers proposed, either approved four luxury towers completed, with three constructed The financial center, London, UK 8 Wiew of Manhattan, New York, USA in 2015, the most notable of those was 432 Park the usual five star amenities that are now expected Avenue, which has ignited a Parkside residential with developments of this ilk, residents will be given tower rush. special life membership cards to the adjacent New York Museum of Modern Art. Currently there are five major luxury residential towers in the city’s construction pipeline, due to complete Currently under construction and set to complete by within the next four years, with two situated Parkside. early 2017 is the 951ft 220 Central Park South, located The first of these expected to complete is 30 Park directly on the Central Park border. Providing some Place. The 938ft tower will be a combination of of the finest views of one of the world’s most famous 157 private residences, as well as a Four Seasons parklands, 220 Central Park South will accommodate Hotel. Overlooking City Hall Park the Robert A.M. 150 apartments across 65 storeys, with over $1 billion Stern designed building is looking to revolutionise the dollars of sales already complete within the tower. local property market by providing luxury residences with some of the most enviable views of City Hall, the parkland and the wider city. Currently there are five major luxury residential towers in the Also in the pipeline is the world’s skinniest skyscraper 111 West 57th Street, offering incredible views of city’s construction pipeline, Central Park. Reaching 1,427ft the 80-storey building due to complete within the will provide 60 apartments, with prices set to vary next four years, with two between $14 million to $100 million, which would break local record values if achieved. situated Parkside. Located just four blocks away will be 53 West 53rd The remaining tower in the pipeline is Central Park Tower Street. The 1,050ft luxury residential tower will be on 217 West 57th Street, also known as Nordstrom the final piece in the jigsaw to complete midtown’s Tower, measures up at an impressive 1,522. Set to Billionaire’s Row. Dubbed as ‘one of the most exciting complete in 2018 the tower will be the tallest residential skyscraper projects in the city for a generation’ the tower in the city and second tallest skyscraper, only out- 82-storey tower will provide 140 apartments.