24 Nov

Cost of London 'luxury' on the rise

Cost of London 'luxury' on the rise

There has been a substantial rise in the cost of so-called luxury homes in the capital city.

Traditionally, a £1 million home was by definition a luxury property but over the past ten years, prices in London have grown significantly with 7,529 homes with such a price tag being sold in 2013.

Many high-end properties were originally limited to the most desirable areas of Kensington & Chelsea and Westminster.

However, now they are spread throughout the city. Research by Savills reveals that the number of homes worth more than £1 million has increased by 165 per cent over the last five years as demand to live in London remains strong.

The Daily Telegraph reports that auctioneer Christies estimates the official cost of 'luxury' in central London is now around £4 million but this could rise even higher over the coming months.

"You can buy a good one-bedroom apartment of about 1,000 sq ft in a high-end development for £4 million,” says Giles Hannah of Christie’s International Real Estates.

"With international demand driving prices, I would expect to see similar rises in the near future."

This summer saw a record price set in the capital, when 18 apartments in the Clarges complex close to Green Park sold for £210 million - making it the most expensive property transaction based on square foot.

Property agents CBRE believe many buyers are being attracted by homes that offer convenience and lifestyle, as well as offering a personalised touch.

A number of new penthouses have recently been released to the market with a price tag of £25 million. Located in the West End, the properties could appeal to those wanting to be in the heart of the city.

However, the growing prices are also leading to developers looking at exclusive renting luxury options.

A block of offices at One Southampton Street have been converted into apartments, where tenant will be able to live for a weekly amount of £3,200.

"There was a bidding frenzy for Southampton," explained Alie Horton of agents CBRE.

"Covent Garden is the new cool. It's like a grown-up Shoreditch,” she added.

Outside of London, the South East has the highest number of £1 million plus properties.ADNFCR-1222-ID-801762055-ADNFCR

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