The volume of prime residential property being planned for London continues to surge, with over 15,000 units worth in excess of EUR 48 bn currently earmarked for development over the next 10 years, according to EC Harris, the global built asset consultancy.
The volume of prime residential property being planned for London continues to surge, with over 15,000 units worth in excess of EUR 48 bn currently earmarked for development over the next 10 years, according to EC Harris, the global built asset consultancy.
EC Harris' London Prime Residential Development Pipeline report shows that 125 schemes are currently at various stages of site acquisition, planning and construction, equating to a total floor area of nearly 20 million sq ft (1.8 million m2), equivalent to the size of the Olympic Park in East London. This marks an increase of 70% from last year's report, fuelled by developers and landowners responding to continued strong demand from overseas cash purchasers for new residential property and rising property values across prime London residential markets.
The report indicates planned development is strongest in the Chelsea & Fulham areas with one in four (25%) of the units in the pipeline located there, followed by developments on the South Bank (17%), City and Fringe (12%), Midtown (11%) and Kensington (10%).
2016 appears to be the peak year for delivery, with schemes totalling around 3,800 units set to come to market in that year alone. Two of the largest schemes in the pipeline are the major regeneration projects planned for Earls Court and Battersea Power Station, each predicted to deliver several hundred prime residential units over the course of the next decade, reflecting that 'prime' is no longer confined to the likes of Mayfair or Chelsea.
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.'
