Value of penthouses in London soars
The value of penthouses currently being sold in London now exceeds £1 billion, according to new research by property company CBRE.
The report; Penthouse London: paying a premium for perfection, is CBRE’s first in depth study of the London penthouse market, which has soared in value since the prime residential market began to recover from the global property crash.
The research also gives a definitive guide to What makes a penthouse, and says it is important to differentiate between true penthouses and large flats.
Penthouses are being developed across London, but vary dramatically in price and it is now impossible to buy a penthouse in London for less than £1 million.
The report says that while you may find penthouses priced between £1.5 million and £3 million in Islington and Camden, in prime central London the starting point for penthouses is closer to £4 million and in the most desirable boroughs prices average £13 million and can easily top £4,000 per square foot.
On average, penthouses sell for a 60% premium over the rest of a development, and can account for 20% of the Gross Development Value of the project involved.
However, penthouse’s sales are not limited to international investors. While many transactions are shrouded in secrecy, sales to UK buyers account for almost half of those achieved by CBRE.
‘No one should under estimate the importance of penthouse sales to the London property market. Sales of more than £1 billion, which is nearly double the value of the government’s Get Britain Building fund, and as well as supporting the construction market, will also provide more than £70 million of stamp duty,’ said Jennet Siebrits, head of residential research at CBRE.
According to Mark Collins, CBRE head of residential, penthouses of the quality on sale in London now cement the capital’s new status as a home from home for the super rich as well as providing an invaluable store for their wealth.
‘With the burgeoning volume of billionaires in the world and the increasingly international appeal of prime London real estate we anticipate that the penthouse market will continue to be a very exciting and elusive space going forward,’ he said.
‘The research says some penthouses have a range of features, including a private entrance or lift, a library or office space and additional suites for guests or staff. Often buyers demand strong security measures such as bullet proof windows, a panic room and , retina recognition systems,’ he explained.
‘But there are ten features that are common across almost all London penthouses, ranging from the best locations, to generous outdoor space, spectacular views over a city or park, and include ground breaking technology,’ he added.
Top penthouse features requested by buyers are; high floor to ceiling heights with glass wrap around, generous outdoor space up to 20% of the floor area, luxury specifications that are notably better than the rest of project, located at the top of an iconic tower, designed by leading architects, best quality appliances, ground breaking technology, a broad range of facilities and additional amenities in the development, state of the art security and spectacular views over a city or park.