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 jennet.siebrits@cbre.com

David Chapman Analyst +44 20 7182 8047 david.chapman@cbre.com

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