Knight Frank has identified part of central London which it describes as being historically overlooked but likely to be transformed in the near future - with likely good returns for buy to let and other investors.
It says the W2 postcode will soon see new landmark developments, as well as the wider regeneration of Queensway and the arrival of Crossrail at Paddington.
The agency claims W2 is currently undervalued relative to other neighbouring markets.
The firm’s latest research shows that average sales prices in W2 stood at just over £1m in 2020 – 22 per cent lower than average values in Notting Hill, and more than 70 per cent lower than other park-adjacent neighbourhoods such as Kensington and Knightsbridge.
With the race for space and tenants and buyers alike wanting access to gardens and green space post-pandemic - particularly those in urban settings - the firm says W2 is well positioned to benefit.
Alexander Lewis, partner in Knight Frank’s residential development consultancy team, says: “For decades, those in the know have bought in Bayswater taking advantage of super-prime accommodation for prime prices. This was largely down to the proliferation of tourist hotels and the absence of any cohesive retail provision. Today, the budget hotels are all but gone, converted into luxury apartments, and the much talked of re-imagining of Queensway is underway. Those looking for out-performance will be targeting Bayswater.”
Oliver Knight, the agency’s head of residential development research at the agency, adds: “The pandemic has underscored the value of residential districts close to parks and open space. Combined with the wider transformation of the area, W2 is one neighbourhood which stands to benefit.
“Our research has found that homes adjacent to one of London’s Royal Parks can command a significant premium. That figure stands at 33 per cent, on average, for a park-adjacent property, while those with a park view can command a greater premium, with a potential 75 per cent average uplift.”
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