In the coming ten years, more than 35,000 new luxury homes will be built in London, according to the Arcadis report.In its analysis Arcadis, the leading global design and consultancy firm for natural and built assets, identified 196 sites that span the breadth of the capital and the combined sales value of these properties is estimated at over £77 billion.
Chelsea and Fulham are ranking first in number of new home developments totalling £20bn. 10,914 new luxury homes are being developed in these locations. Southbank is getting 8.863 properties worth £14.2bn including the Nine Elms development at Battersea.
Mark Cleverly, Arcadis head of Commercial Development, said:
“Since around 2009, the value of prime residential property in central London has seen dramatic rises, making it one of the hottest markets in recent memory. So, it is hardly surprising that we have seen ongoing interest from investors all over the world. What is interesting, though, is the continuous geographical spread we are seeing. Prime housing is springing up around regeneration areas and on the outskirts of the financial district, suggesting the days of the West End dominating the high-end property market may be over.”
“That said, things are changing. It remains to be seen how the market responds to the new set of challenges being thrown at it. Land, materials and labour are growing in price, meaning the costs involved in actually building these homes is growing significantly. This, coupled with a recent gradual easing off of buyer demand could affect margins and mean investors opt to convert their developments to target the more buoyant office and commercial markets. With no obvious end in sight to the unpredictability of the global economy this approach could soon become the norm.”