In a historic city like London, you’d be forgiven for thinking that all the possible development opportunities have already been discovered – but is this actually the case?
According to a report from Pastor Real Estate, there could in fact be billions of pounds in development opportunities throughout central London hiding in plain sight – as car parks. The report reveals that there is currently a whopping £1.3 billion locked in car parks around London, which if developed upon, could house stunning luxurious residential properties. Given the high demand for property in London in comparison with the limited supply, this news is being welcomed by developers and market analysts alike.
Changing London’s car parks – what are the benefits?
London is a market in which the demand vastly outstrips the supply of available housing, especially so in the densely populated centre.
It is here, in markets like Marylebone and Mayfair, that uncovered development potential. Throughout these two areas, it has be found that there are currently 18 operational multi-storey car parks that provide over 4,500 spaces, and these sites currently conceal over £1.3 billion of prime development land. According to David Lee, Head of Sales at Pastor Real Estate, there is hidden potential in many locations around the city, developers just need to look for it – and indeed many already have. Car parks are becoming increasingly popular amongst developers when searching for viable residential land in prime central London. As the demand for new new residences in London increases, the sites discovered become increasingly more attractive as a luxury residential development.
Opportunities for residential developments are likely to be far more appealing than car parking spaces, given the hot housing market in London coupled with the fact that 46 per cent of Londoners utilise public transport. Residents of London are getting younger as London evolves and dependency on cars is decreasing as transport connections continue to improve. David Lee comments: “This has seen the need for parking in central London decline, whilst the new housing will be a pressing concern in the capital for the foreseeable future.” In addition to this change in attitudes towards cars and driving, there’s the change in housing prices to consider as well. Property prices in London are projected to rise by nearly a third between now and 2019, and with demand in the capital rapidly outweighing the supply, there has never been a greater need for more residential properties to be built in London.
For savvy developers then, coming across land on which it is feasible to develop luxury residences and mixed-use complexes right in the heart of London is incredibly advantageous. The locations are some of the most enviable in London, such as Portman Square in Marylebone. The report identifies this site, currently in use as a car park, as having the highest potential residential value. At present, it provides a value of £133.5 million (based on an assumed 4 per cent yield per annum), but if transformed into residential properties, this value could skyrocket to £496.2 million (assuming £3,500 per sq. ft.).
According to David, finding opportunities in places like these car parks will continue so long as the demand for property in London remains high. Development opportunities will continue to be identified to provide high-quality residences to meet the demand of the urban population. “Throughout the report we have identified a number of strategic car park sites that could now be more viable and better suited as a residential or mixed-use development.”
Article Submitted By Community Writer