Trafalgar Square Conservation Area has become London’s latest residential development hotspot, with 362 new luxury apartments constructed over the last five years, according to a report.
The property value rises outperforming the rest of the West End and the capital’s most expensive apartment under construction, revealed the new Beauchamp Estates West End Report.
The West End Report was commissioned by Beauchamp Estates, with data research and analysis by Dataloft, the market intelligence group, using property data from 2011 to 2016 and figures from the Land Registry, Lonres and Zoopla.
The Beauchamp Estates report focuses on the Trafalgar Square Conservation Area, looking at the history, development and property value record of the 1.9km thoroughfare which runs between St James’s Palace and the Western End of Pall Mall, through to Trafalgar Square, and from the Strand to Temple Bar.
Between 1600 and 1700 Pall Mall and the Strand were residential addresses lined with mansions and townhouses.
The location then became commercial during the 19th and early part of the 20th Century, when Pall Mall was redeveloped into a luxury retail destination and Trafalgar Square/Cockspur Street became a location for travel companies and the Strand an area known for its theatres, cafes and restaurants.
Thirdly, after a long period of decline a major urban renewal programme led by The Crown Estate started in 2002. This focused on improving the public realm, refurbishment of existing facades and the sale on new long leases of former government and commercial buildings. This has kick-started a major residential revival and influx of a flurry of new hotels and luxury retailers which is still ongoing.
The Beauchamp Estates report reveals that since 2011 nine new residential developments have or are being constructed along Pall Mall, Trafalgar Square and the Strand. These developments provide 362 new luxury apartments and penthouses at values ranging from £2,500 to £3,000 per sqft.
The report highlights that apartments in these new developments have an average sales price of £1.74 million, up 4.7 per cent since 2015, and fall into three clear types of development.
The report reveals that over the last three years the rate of price growth in the Trafalgar Square Conservation Area has outperformed neighbouring Mayfair and Marylebone.
Average sales prices per sqft in the local area have risen by 33 per cent compared with 26 per cent for Mayfair and 24 per cent for Marylebone over the same period.
The new year also sees the main launch of Oceanic House, the former White Star Line headquarters at No.1 Cockspur Street, which has been converted into seven luxury residences priced from £2,830 per sqft and for sale through Beauchamp Estates. Other luxury residential developments in the pipeline include Admiralty Arch which is set to create a handful of super-luxury apartments which will be serviced by the adjoining luxury 6-star hotel and a new club which is also under development. Another new development will be 5 Strand, a scheme of 26 apartments.
Gary Hersham, Partner at Beauchamp Estates says: “The Trafalgar Square conservation area has become a new homes hotspot; it is one of the last overlooked and undervalued areas in London’s West End. Residential values in the area range from £1,800 to £3,500 per sqft, compared to £3,500 to £5,000 per sqft in neighbouring Mayfair, Belgravia and Marylebone. Over the last three years price rises in the area have also outperformed the neighbouring localities drawing both owner occupiers and investors to the area in anticipation of further price increases.”
Paul Finch, Head of New Homes Sales at Beauchamp Estates says: "The Trafalagar Square conservation area sits at the “crossroads” where Whitehall, the Strand, Covent Garden and Pall Mall/St James’s meet. Over the last five years the area has been undergone transformation into a luxury residential and hotel destination. In the last two years alone there has been some £413 million luxury new apartment sales in the district."
"The location is adjacent to Mayfair and Belgravia, yet without the corresponding peaks in residential values. Purchasers in the Trafalagar Square quarter have the benefit of buying into a formerly overlooked location which is now undergoing rapid transformation into a luxury residential address, with the associated capital value uplift that occurs with regeneration and huge inward investment," he added.