Analysis conducted by a London estate agent has shown Simon Morris the value of outdoor space for London property development. The inclusion of outdoor areas in London-based residential property developments can allow investors to maximise returns.
Evidence shows that prime London property development is lucrative. According to London estate agent W.A. Ellis, viewings, offerings and sales of residential properties in prime central London has increased recently, after they fell before the UK’s May general election. However, high demand often means that it’s expensive to develop properties in the prime areas of the UK’s capital city.
Value of outdoor space
This means that investors need to find new ways to maximise return on investment when they develop residential properties in the prime London market. Development Finance Today recently reported that London estate agent Patterson Bowe has revealed that outdoor space can increase the value of a house in certain areas of prime London.
Patterson Bowe’s managing director, Stuart Patterson, explained that “the benefits of London living combined with the luxury of outdoor space are both highly sought after and highly expensive.” He went on to argue: “Property with private outdoor space is obviously the most desirable but even those with access to a communal garden square or proximity to a public green space can still add a surprising amount of value; especially in summer.”
The estate agent backed this argument with surprising statistics. Their analysis showed that adding outdoor space to residential properties in prime London neighbourhoods such as Chelsea, Kensington and Knightsbridge can raise their value by as much as 20%. In contrast, properties of comparable location and size, but which lack outdoor space or proximity to a park or square, command roughly £80,000-£100,000 less on today’s residential property market.
Securing return on investment
This has reminded Simon Morris of a fundamental truth that London property developers need to follow if they wish to accrue significant returns on today’s London property market. The UK capital’s residential sector is more competitive than ever before, so developers need to tailor their properties to the needs and desires of consumers, to ensure they generate lucrative returns from their investments.