In London we’re desperately in need of more residential space.
A report form Pastor Real Estate reveals that converting a car park into a residential development could add up to 300% to the land value.
The report analysed a number of large multi-storey car parks across Mayfair and Marylebone and found that there are 18 operational sites providing over 4,500 spaces currently concealed in over £1.3bn of prime development land.
The report calculates that the car park with the highest potential residential value is on Portman Square, Marylebone.
Take a look at London’s most lucrative parking lots:
1. Portman Square currently provides a value of £133.5m (assuming an annual income at 4% yield). As it is located on one of Marylebone’s finest garden squares the total residential value could reach £496.2m.
2. The 298-space car park on Bryanston Street currently provides an annual income of £90.6m. If redeveloped into a residential scheme the value of the site could reach £336m.
3. The car park on Welbeck Street provides an annual return of £109.5m for its 360 spaces. A residential scheme located on the prime Marylebone site has the potential to be worth £406m
4. Located in a prime Mayfair location, the multi-storey car park on Audley Square has been the subject of numerous residential planning applications in recent years. The latest plans submitted would see the large site converted into a luxury penthouse development, with a reported projected value of up to £2bn.