Occupying a prominent stretch along the northern boundary of Hyde Park, W2, which incorporates Paddington, Bayswater and Queensway, is an often overlooked and misunderstood patch of Prime Central London (PCL).
However, the area is in the midst of a spectacular transformation and now is the last chance for discerning purchasers to consider this undervalued neighbourhood ahead of an inevitable boom, according to leading property consultancy Tyburn.
Recent market data from analysts LonRes reveals that there has been a small annual price fall across Prime Central London, however, fringe areas, such as Bayswater and wider W2 have seen growth of 6.7% across the same period. The district has also recorded a 4% increase in price per sq. ft. achieved in 2023 compared to 2021. According to Tyburn Founder, Moreas Madani, this is being driven by the current regeneration of the area and high-end projects in the pipeline:
“The W2 postcode and Bayswater in particular have long been on the fringes of Prime Central London, with many favouring Mayfair, Belgravia or Knightsbridge, but it has always provided similar stock with large homes with gardens, townhouses with access to private gardens and grand apartments. What is now turning the tide is the wider regeneration of Queensway, the arrival of Crossrail at Paddington and high-end developments, such as The Whiteley and Park Modern.
“There is still value to be found here and we are advising our clients to seriously consider making the move now before we see a value boom upon the completion of various projects that will transform the area.”
According to Knight Frank’s W2 Report, the postcode with the longest park frontage in Prime Central London, is vastly undervalued relative to other neighbouring markets. Figures from the report reveal that average sales prices in W2 stood at just over £1 million in 2020 – 22% lower than average values in Notting Hill, and more than 70% lower than other park-adjacent neighbourhoods, such as Kensington and Knightsbridge.
The relative value on offer in W2 compared to neighbouring PCL districts has attracted the interest of high-profile developers, with a strong pipeline of new development under construction. Currently, 70% of the 550 units in the Bayswater pipeline are being delivered as part of the Queensway regeneration, which has the potential to make the area an attractive prime residential destination in line with its neighbouring districts.
Moreas added: “The completion of the handful of super prime new developments and regeneration projects in W2 will have a major impact on the local property market. We are already seeing significant interest from our client base in acquiring luxury turn-key homes in projects such as The Whiteley in anticipation of potential value growth, whilst also desiring a superior home in the area, with direct access to world-class amenities.”
Importantly, the resurgence of W2 can also be attributed to the impact of the COVID-19 pandemic, which played an important role in buyers taking a different view of the area.
During the lockdown period there was an increased emphasis on access to gardens and green space, with areas in urban settings particularly sought-after. Notting Hill and Bayswater have been among some of the strongest performing central London markets through the pandemic thanks to a combination of good local amenity, access to green space and walkability.
With its pipeline of high-quality new residential development, as well as its proximity to Hyde Park, the W2 property market is well positioned for exceptional growth in the coming years, with the area expected to contribute greatly to forecasts of a 10% increase in PCL property values over the next five years.
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