A recent market analysis by Unlatch has revealed where London’s new-build premium hotspots are. Housebuilders who hone in on these parts of the capital stand to make the most profitable investments.
New-build homes sell for an. average of £261 per square foot. Compared to an existing home this is 11% more.
The new homes sales progression and aftercare platform’s analysis claims that opportunities for new-build developers to achieve higher values are in certain parts of London.
The most profitable pockets of London for new-build homes
In London’s SW3 postcode area, home to Chelsea, the average existing home costs £1,690 per square foot while new-builds provide a 77% premium at £2,988.
In Kensington, home to the W8 postcode, the average existing home costs £1,555 per square foot while the average new-build is 75% more expensive at £2,714.
Outstanding new-build premiums are also available in W14 (66%), E1 (63%), W12 (59%), SE18 (56%), WC2 (55%), RM1 (50%), and RM7 (48%).
Unlatch’s research shows there are 96 London postcode areas where new-build developers can command a higher premium than the UK’s average of 11%.
Lee Martin, head of UK for Unlatch says: “The new-build premiums available in London are extraordinary. It’s Britain’s most truly global city and a desirable buying location for monied people from all corners of the world.”
“The city also has a shortage of space and a need for new homes. As such, building vertically is the only real option.”
“This, of course, suits new-build developers nicely who, when they choose their urban locations correctly, can benefit from the massive premiums that buyers are willing to pay for quality, well-located homes.”
“It is also worth noting that the existing homes statistics are taken across the board and include both houses and apartments, whilst the new build figures are predominantly apartments which take up less square footage.”