The rise of the urban village
For a prestigious central London address that represents a safe, long term investment, buyers are looking increasingly outside of London’s super-prime areas and towards the capital’s ‘urban villages’ in order to get better value for money, says niche residential developer Northbeach.
These areas, which include South Kensington, Notting Hill and Holland Park, are typified by desirable period properties, tight-knit communities, good transport links and a range of five star shops and amenities, from Michelin starred restaurants to private gyms, prestigious fashion labels, organic farm shops and highly-regarded schools.
Adam Blaskey, Managing Director of Northbeach comments “Recent sales at the super-prime or ‘uber-prime’ end of the central London property market are reported to have achieved around £6,000 per square foot. As prices in London’s super-prime neighbourhoods such as Knightsbridge and Mayfair are pushed up as a result of fierce international competition, many buyers are turning their attention to London’s desirable ‘urban villages’. Not only do these areas offer better value for money, larger homes, bigger gardens and great shopping, but they also benefit from a unique village-like charm that both residents and investors find incredibly attractive.”
Nestled between Kensington, Chelsea and Knightsbridge, South Kensington is one of London’s most popular urban villages and the location of Northbeach’s most recent sales success.
In March, Northbeach completed the sale of the freehold and all five apartments at 3 Queen’s Gate Place to a Chinese investor for a price in excess of £14 million - a record for this type of property in the area and an example of how urban villages like South Kensington are now enjoying increased interest from international buyers who previously tended only to be interested in the either the super-prime areas such as Knightsbridge and Mayfair, or in large new-build schemes in the Docklands or along the river.
Served by both South Kensington and Gloucester Road Underground stations, residents of South Kensington also enjoy the designer shopping meccas of nearby Brompton Cross, Sloane Street, Kings Road and Fulham Road as well as some of the capital’s best-loved cultural gems on nearby Exhibition Road, such as The Natural History Museum, The Science Museum, The Victoria & Albert Museum, and at the end of which lies the world-famous Royal Albert Hall and the open spaces of Hyde Park. A £30 million transformation of Exhibition Road aimed at making it more pedestrian friendly and one of the finest streetscapes in London is nearing completion, and will only add to the area’s desirability.
Visitors to the area may also sense a strong French influence, mainly due to the presence of the French consulate, the French Institute, numerous Parisian-style cafes and the Lycée Français Charles de Gaulle - a prestigious French secondary school that boasts the highest average mark for the Baccalauréat Général outside of France – all of which work to attract a large number of French expatriates and contribute to the charm of the area.
Adam Blaskey comments, “The majority of the large Victorian buildings that make up this area were constructed between the 1860’s to 1880’s and South Kensington remained extremely popular up until the late 1980’s and early 1990’s but was then perhaps over-shadowed by the emergence of more fashionable urban villages such as Notting Hill, especially following the release of the film in 1999.
“Over the last few years, I believe that South Kensington has rightfully regained its position due to the incredibly voluminous period properties in streets and garden squares such as Queen’s Gate Place and Queen’s Gate Gardens, the relative value offered in relation to nearby Knightsbridge and Kensington, and of course the proximity to so many world class amenities.”
Adam continues, “With around 50-60% of properties in prime central London owned by overseas buyers, the level of international interest cannot be underestimated. The ongoing wealth creation in the Far East, the recent economic instability of several European countries, and current troubles in North Africa and the Middle East have all resulted in a significantly larger number of international high net worth individuals looking to invest their money in the safe-havens of the prime central London urban villages. Here, properties such as 3 Queen’s Gate Place, are tangible assets which benefit from both the potential for strong capital growth and a very good level of rental income, and it must only be a matter of time before prices in these desirable urban villages where values are currently between £1,500 to £2,000 per square foot, play catch-up with the prices being achieved at the super-prime end of the market.”
For more information, visit: northbeachproperty.com
