There is no stopping the prices of London’s luxury real estate. London-based real estate agents Knight Frank recently put together a report that studied prices in London’s prime residential sector. The report particularly studied One Hyde Park, the most expensive residential development in London. This is the first time that prices at One Hyde Park have been analyzed. Numbers from the most expensive real estate residential development in the world have provided interesting insights into the super-prime property sector in London. Knight Frank’s key finding was that prime real estate prices are poised to touch the £10,000 per square foot mark by no later than 2016.
When One Hyde Park was being constructed back in 2006, the price per square foot was £4,560. By late 2011, it has ballooned into £7,500. The figures are based on the sales of 62 residential units, which raked in a total of £1.4 billion. The high prices are due, to a large extent, to One Hyde Park’s connections with high-end brands that add value to the apartments within the complex. The link-up with Mandarin Oriental promises a certain level of luxury services. Meanwhile, the association with architects Rogers Stirk Harbour + Partners, and interior designers Candy & Candy add to the overall appeal of homes in this residential complex in London. Most expensive real estate developments benefit from such tie-ups.
But don’t expect another One Hyde Park in the near future, says the report. One reason is that financiers are less willing to put their money in such residential projects, which are largely speculative ones. Second, super-prime addresses like One Hyde Park are not available constantly. One Hyde Park too, was built during a different economic climate. At the time, international buyers who had recently come into a lot of money were keen to invest in London real estate. Ultra high net worth (UHNW) individuals from Asia, Russia and the Middle East particularly, began to make a beeline for prime London property. This interest from abroad spurred an interest in creating luxury homes even more luxurious. The best materials, high-end technology, off-street parking, and the services of expert concierge teams became the norm in the super-prime sector. One Hyde Park was born in such an environment.
London is not alone in inviting investment from wealthy international buyers. Other top destinations include New York, Monaco, Hong Kong and Singapore. However, London continues to be the leader in this respect. And One Hyde Park continues to be the most expensive residential development in the world.
What makes One Hyde Park such a success? One, the fact that it caters to a very niche audience. Two, that audience remained unaffected by the worldwide recession. Partly because of the presence these international UHNW individuals, central London also managed to remain somewhat unaffected by the economic crisis.
There is promise in the super-prime sector of London. But the lack of suitable sites is a problem. Another problem is the lack of expertise in creating another development like One Hyde Park. But if the right people can be brought in, and the ideal site can be found, there is a success story waiting to happen.