Prime and super-prime residential areas of London are spreading at record rates, forming a growing ring around the classical hot spots in Knightsbridge and Mayfair, according to a new CBRE report.
Properties traditionally defined as prime, or having per square foot prices in excess of £1,000, are expanding by 150 meters a year, the real estate firm said.
Those seen as ultra-prime, or having prices of £2,000 per square foot (psf) are also racing ahead, expanding by a further 350 meters each year.
“…We envisage areas that are undergoing substantial redevelopment, such as Paddington and Earls Court, which have products tailored to a very high standard, could reach averages of £2,000 psf within five years,” the report said.
CBRE additionally forecast that Fulham Riverside and Aldwych will fall into this band even sooner and will eventually be followed by King’s Cross, Stratford and the Vauxhall-Nine Elms where the Battersea Power Station development in particular is attracting buyers.
Mirroring this trend is a rise in the very top end properties, concentrated in south-west London, where prices in excess of £4,000 psf have become the norm. The One Hyde Park development reportedly fetched an average £6,000 psf, with CBRE saying such prices may well be replicated in future prime developments, thanks to the strong interest of foreign buyers and the ongoing ability of cash-rich Brits to invest in property.
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