London residential The proximity premium
2–3London ResidentialThe proximity premium
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
Imperial College
King’s College London
University of Westminster
UCL
City, University of London
LSE
Spitalfields Market
Hay’s Galleria
Borough Market
Harrods
Harvey Nichols
FenwicksLibertySelfridges
Covent Garden
M&S
Fortnum & Mason
Dinner by Heston Blumenthal
Marcus
Nobu
Le Gavroche
UmuSketch
Hakkasan
Hakkasan
The Ivy
The Greenhouse
Bibendum
Gordon Ramsay
The Goring
The Connaught
Claridges
The Ritz
The Langham
The Savoy
Mandarin Oriental
The Lanesborough
The DorchesterTate Modern
Imperial War Museum
White Cube
Tate BritainSaatchi Gallery
V&A MuseumNatural History Museum
Science Museum
Somerset House
British Museum
Sir John Soane’s Museum
Royal Albert Hall
Royal Academy of Arts
Whitechapel Gallery
London Palladium
Queen’s Theatre
Royal Opera House
London Coliseum
Savoy Theatre
Royal Festival Hall
BFI
National Theatre
Palace Theatre
The Globe Theatre
Barbican
The proximity premiumEvery home buyer is unique. Each has their own motivation and preferences, one might like to live close to a university, for others restaurants may be key. But whatever the motivation, this is reflected in the price; properties in central London close to world class amenities achieve a 52% price premium.
Our clients have wide ranging demands when it comes to buying a home. Whether it be to live in or as a rental investment, our buyers often have a clear idea of where they want to buy; geographical location is important. And this can impact on the price, with higher prices in the prime areas of Knightsbridge and Mayfair. However, even within areas prices vary.
To determine whether the price varies depending on the local amenity offer, we have identified the average price of properties in central London within 500 metres of an amenity, such as a university, Michelin starred restaurant, hotel or well-known department store. We compared this with wider borough prices to identify any price differential (see the back page for a fuller description of our methodology). Our research shows that living close to amenities can add around 50% to central London property prices.
500 metre radiusaverage price
Borough average price % Uplift
Department stores £3,226,916 £1,759,570 83%
Hotels £3,106,509 £1,681,586 85%
Restaurants £2,893,142 £1,680,406 72%
Universities £1,850,369 £1,478,673 25%
Theatres £2,033,864 £1,489,960 37%
Museums £1,996,004 £1,456,624 37%
Retail £2,095,563 £1,410,035 49%
The highest premium occurred for properties close to hotels. Our analysis included Claridge’s, the Dorchester and The Ritz. The average prices of properties within 500 metres of hotels was £3.2 million, more than double the borough average of £1.68 million. Proximity to well known department stores, such as Harrods and Harvey Nichols, also added nearly double to property values. Being within 500 metres of a world class university adds around 25% to property values.
Table 1. Price premium for properties close to amenities Map 1. Central London amenities analysed in CBRE’s research
Source: Land Registry
This map does not contain all the amenities in central London, please refer to methodology on the back page.
4–5London ResidentialThe proximity premium
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
Spitalfields Market
Hay’s Galleria
Borough Market
Harrods
Harvey Nichols
Fenwicks
Liberty
Covent Garden
M&SSelfridges
Fortnum & Mason
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
The Goring
The Connaught
Claridges
The Ritz
The Langham
The Savoy
Mandarin Oriental
The Lanesborough
The Dorchester
Department storesProximity price
£3,226,916 Wider borough price
£1,759,570 Proximity premium
83%
HotelsProximity price
£3,106,509 Wider borough price
£1,681,586 Proximity premium
85%
The founder of Liberty’s, one of London’s most well known department stores, once stated “I was determined not to follow exciting fashion, but to create new ones.”
The Goring is famous as the hotel where Kate Middleton stayed the night before her wedding to Prince William. It is the only hotel in the world to be granted a Royal Warrant of appointment to HM The Queen.
6–7London ResidentialThe proximity premium
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
Dinner by Heston Blumenthal
Marcus
Nobu
Le Gavroche
Umu
Sketch
Hakkasan
Hakkasan
The Ivy
The Greenhouse
Bibendum
Gordon Ramsay
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
Imperial College
King’s College London
University of Westminster
UCL
City, University of London
LSE
RestaurantsProximity price
£2,893,142 Wider borough price
£1,680,406 Proximity premium
72%
UniversitiesProximity price
£1,850,369 Wider borough price
£1,478,673 Proximity premium
25%
There are 72 Michelin star restaurants in London.
According to the QS World University rankings, London has 2 of the top universities in the World.
8–9London ResidentialThe proximity premium
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
London Palladium Royal Opera House
London Coliseum
Savoy Theatre
Royal Festival Hall
BFI
National Theatre
Palace Theatre
The Globe Theatre
Barbican
Queen’s Theatre
Buckingham Palace
Hyde Park
Big Ben
London Eye
The Shard
30 St Mary Axe
Tower Bridge
F I T Z R O V I A
P A D D I N G T O N
M A R Y L E B O N E
W E S T M I N S T E R
W E S T M I N S T E R
M A Y F A I R
S O H O
B E L G R A V I A
V A U X H A L L
S O U T H W A R K
C I T Y O F L O N D O N
Tate Modern
Imperial War Museum
White Cube
Tate BritainSaatchi Gallery
V&A Museum
Natural History Museum
Science Museum
Somerset House
British Museum
Sir John Soane’s Museum
Royal Albert Hall
Royal Academy of Arts
Whitechapel Gallery
TheatresProximity price
£2,033,864 Wider borough price
£1,489,960 Proximity premium
37%
MuseumsProximity price
£1,996,004 Wider borough price
£1,456,624 Proximity premium
37%
Agatha Christie’s ‘The Mousetrap’ is London’s longest running show, so far it has been performed for 61 years.
There are 215 museums in London. The British Museum, which opened in 1759, is London’s most visited museum.
Jennet Siebrits Head of Residential Research +44 20 7182 2066 [email protected]
David Chapman Analyst +44 20 7182 8047 [email protected]
November 2017Published
Contact
Methodology
Research
Disclaimer 2017 CBRE
Photography
CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. ©2017 CBRE Ltd.
P2: dutourdumonde / depositphotos.com. P4: AlenaKr / depositphotos.com. P5: Dutourdumonde Photography / Shutterstock.com. P7: pxl.store / depositphotos.com. P8: Bikeworldtravel / Shutterstock.com. P9: lucidwaters / depositphotos.com.
In this research we compared the average price of all residential property transactions within 500 metres of an amenity with the average price in the borough in which the amenity is located. The analysis is based on over 16,400 records from Land Registry data for the year up to October 2017. The analysis excluded areas where there were fewer than 20 transactions.
The amenities were selected to reflect London’s most iconic and recognisable global attractions. This was based on the recommendations of a variety of travel and destination experts. The source used were: www.londontheatre.co.uk/theatres; www.visitlondon.com/things-to-do/sightseeing/london-attraction/museum/top-museums-and-galleries-london; www.telegraph.co.uk/travel/destinations/europe/united-kingdom/england/london/articles/top-10-the-best-luxury-hotels-in-london; www.telegraph.co.uk/travel/destinations/europe/united-kingdom/england/london/hotels; www.visitlondon.com/things-to-do/shopping/department-store/top-10-london-department-stores; www.timeout.com/london/restaurants/michelin-star-restaurants-in-london; www.gq-magazine.co.uk/article/most-luxurious-restaurants-london; www.visitbritainshop.com/world/articles/london-insider-market-guide/; and the 2015-2016 HESA Student Survey.
While the list is not fully exhaustive, it is meant to represent London’s top cultural attractions and very best amenities.
To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at: www.cbre.com/researchgateway.
For residential research please visit: www.cbreresidential.com/uk/en-GB/research