A combination of top-end developments, new transport links, luxury retail and leisure facilities have pushed the City of London, London’s business district, and the surrounding half-mile ‘Fringe’ into the Prime bracket, joining established areas such as Mayfair, Knightsbridge and Belgravia, according to Knight Frank.
These areas will now be added to Knight Frank’s market-leading monthly Prime Central London Index of property prices, which has been tracking luxury property values since 1976.
In a new report launched today, Gráinne Gilmore, head of UK residential research, highlighted the scale of development taking place in these neighbourhoods and explores the flow of wealth into the City and the northern fringe over the last five years. Two leading developers also share their reasons for choosing to build in the City and City Fringe.
“Four main factors make an area stand out as a prime location in central London: good levels of top-end housing stock, a central location, good transport links and excellent retail and leisure facilities. This combination delivers a higher than average propensity for growth in capital values. “The City of London and the surrounding City Fringe are two quite distinct markets, but both have been elevated due to recent significant changes,” Gráinne Gilmore said.
“The City of London has always been a small residential market, and will continue to be so, but there has been a significant uplift in the number of units in the pipeline, especially of high-end apartments. Added to this, the stellar performance of prices for existing properties in the area, up 122% over the last decade, has pushed a significant number of existing units into prime territory of more than £1,000 per square foot.
“Crossrail – the high speed trans-London rail link due to open in 2019, will also hugely benefit the City, making it easier to travel from and to the financial district. There will be direct access to three airports from Barbican station in the east of the City. In addition, the amenities available to residents in the City have improved markedly in recent years, topped off by the introduction of seven-day shopping at One New Change, a high-end mall, at St Paul’s last year.
“The City Fringe is a less-developed market than the City, although the western fringe of Clerkenwell and Farringdon is more established. But there are signs that the eastern fringe of Shoreditch and Spitalfields is catching up, with growing demand for property by city workers keen to enjoy the wide range of nightlife and cultural opportunities the area offers.
“The eastern fringe has already benefitted from the recently completed East London Line, and Crossrail will also be a boost to the area, as there will be new stations in both the eastern and western fringes.”
“The last, but arguably, one of the most important factors in the move to prime for the fringe is the new tech hub which has emerged around Old Street in the fringes. Referred to by David Cameron as “Silicon Roundabout” the area now plays host to hundreds of tech start-ups, and to Google’s new office building. Workers in this industry who choose to live nearby, in one of the liveliest areas of the City, will drive demand for residential units in this neighbourhood.”