Prime residential property developments in London up 70%

London has always been an attractive place for developers due to the high levels of demand from people looking for property to rent in London.

But its appeal seems to have been further boosted in recent years, as the number of prime residential developments being planned in the capital has risen by 70 per cent in the last year.

According to figures from built asset consultancy EC Harris, there are some £38 billion worth of projects being planned across London over the next decade.

This equates to more than 15,000 units with a total floor area equivalent to the size of the new Olympic Park in Stratford, or almost 20 million square feet.

Some 125 schemes are currently in progress, either at the site acquisition stage, the planning phase or the construction point, with planned development strongest in the Chelsea and Fulham area.

Indeed, some 25 per cent of the earmarked developments are in this part of London, while 17 per cent are situated on the South Bank and 12 per cent in the City and Fringe area.

Among the largest schemes are the regeneration projects due to take place at Earls Court and Battersea Power Station, with each one delivering several hundred prime residential units.

Mark Farmer, head of residential at EC Harris, said: "The size of the pipeline is a reflection of a massive vote of confidence in London and in UK plc and will have only been enhanced by this summer's Olympics showcase."

He added: "London prime residential continues to act as a magnet for global investment, and offers clear opportunities for properly organised and funded developers and investors to generate healthy returns."

The report states that 2016 is likely to be the peak year for delivery of these prime residential projects, although there are a number of developments that will be completed with units opening to tenants this year. This includes One Hyde Park and the Shard.

Posted by Andy Britten

Published 6th September, 2012

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