Marylebone is now one of London’s most sought after locations for global buyers
A wide mix of housing has helped Marylebone in London become one of the most successful so-called urban villages in the city that is attracting buyers from all over the world, a new analysis suggests.
The report explains that Marylebone has been transformed by a wave of new residential development, providing over 450 new homes, which has created a three tier property market and as a result the area has joined adjacent Mayfair as one of London’s most highly sought after addresses.
It says that the three tier market consists of second hand property, new or newly refurbished homes and luxury residences, each having their own distinct buyer profile and price performance with more homes in the development pipeline.
Published by top end estate agent Beauchamp Estates, with statistical analysis by Dataloft, the market intelligence group, the report reveals that second hand and newly refurbished homes in Marylebone typically sell for £1.5 million, up from £1.4 million in 2013, achieving an average of £1,581 per square foot.
These homes predominantly sell to British and continental European buyers, with newly refurbished homes also appealing to some Middle Eastern purchasers.
Since 2011 some 459 new homes have been built or are under construction in Marylebone, with another 768 in the planning pipeline. This wave of new residential development has largely taken place in just four locations; Chiltern Street, Marylebone High Street, the edge of Regent’s Park and the border with Fitzrovia.
The report also reveals that new homes typically achieve £2,000 to £2,500 per square foot, a significant price premium when compared with second hand transactions and that in the last two years a new ultra-prime sector has emerged at top end of the Marylebone residential market.
This new market consists of a collection of recently built, highly exclusive, luxury residential developments, with hotel style concierge and leisure facilities, which command values of £3,000 to £3,500 per square foot.
Beauchamp Estates say that the luxury developments market in Marylebone has enabled the district to outperform other urban villages over recent years. Over the last five years sales prices per square foot in Marylebone have increased by 45.6%, compared with 27.4% for Mayfair and 22.4% for Notting Hill.
Five years ago average prices per square foot in Marylebone were 8.3% lower than the average across the prime central London housing market but now they are 7.1% higher.
The report points out that Marylebone’s ongoing development looks set to continue and in 2018 rail and underground connections for Marylebone will increase with the opening of the new Elizabeth Line (Cross Rail) stop at Bond Street in December.
Beauchamp Estates says that whilst the annual volume of sales in Marylebone has declined from 457 in 2015/2016 to 300 in 2016/2017, and prices for second hand homes have recently dipped by 2.3%, there has been a ‘flight to quality’ with ultra-prime buyers now showing a significant preference for newly built, luxury or newly refurbished homes.
‘Marylebone has become one of London’s most fashionable neighbourhoods, mixing beautiful period architecture with stunning new developments,’ said Gary Hersham, managing director of Beauchamp Estates.
‘The new homes market in Marylebone has developed since 2011, with the ultra-prime luxury sector only emerging recently in the last two years. The growth and success of the new developments market has enabled Marylebone resi-value growth to outperform both Mayfair and prime central London overall over the last five years,’ he added.
According to Alex Bourne, co-director of Beauchamp Estates premium retail and leisure provision have been the two key features that have helped to drive the area’s repositioning. Marylebone High Street and Chiltern Street in particular have seen an influx of fashionable new clothing boutiques, smart cafes, the new BXR Gym, whose members include sporting icon Anthony Joshua, and the new 5-star Chiltern Firehouse Hotel and restaurant, which is popular with A-list celebrities.
Fellow co-director Richard Douglas pointed out that over the next 14 months a series of new developments will be coming on-stream around the High Street, by Regent’s Park and on the border with Fitzrovia.