London Penthouse Market Tops ₤1 Billion, CBRE Says

London Penthouse Market Tops ₤1 Billion, CBRE Says

Research published on Friday, May 10 by CBRE Residential revealed that penthouses on the market in central London are worth more than ₤1 billion – somewhere double the ₤550 million the government has allocated for the Get Britain Building fund.

According to the research firm, penthouses account for up to 20 percent of gross development value on many buildings as wealthy buyers become increasingly demanding. Jennet Siebrits, head of residential research at CBRE Residential, has been quoted by The Times as saying that the report shows an increasing tendency for penthouses to be bought unfurnished and to be redesigned by the new owners.

“A few buyers were wanting to put their own stamp on [the properties],”Jennet has said. “At One Hyde
Park we’ve heard of a couple of people wanting the design to be to their own personal taste. People wanted to buy them almost as a shell and core to fit them out to their own exacting standards.”
The exclusive penthouse market is hard to predict as many developers do not reveal the prices on the apartments they are selling or the identity of the buyers. There is also some leeway in the definition of a penthouse – in order to qualify, the report’s authors argue, a property needs to have extensive outdoor space, high ceilings and a commanding view.

Penthouse prices vary extensively – outside the Square Mile it is possible to purchase a penthouse for a six-figure sum but the closer you get to the heart of London, the quicker prices begin to soar. Some three years ago a penthouse was sold for ₤140 million to an unknown buyer. The property was located in One Hyde Park – an extremely luxurious complex developed jointly by the Candy brothers and Sheikh Hamad bin Jassim bin Jaber Al Thani, the Prime Minister and Minister of Foreign Affairs of Qatar. In 2011 it was reported that an unfurnished duplex penthouse in the Bulgari Hotel and Residences, which opened in 2012, went for ₤100 million – ₤1,000 per sq. ft. was added to the price just because of the Bulgari name. CBRE Residential found that several central London penthouses were going for more than ₤4,000 per sq. ft., six times the average price of property in London.

**Luxury Lambart & Browne Penthouse For Sale in London**
!m[Prices Vary from Six-Figure Sums to ₤140 Million](/uploads/story/2207/thumbs/pic1_inline.png)
Last week, a luxury two-bed apartment with a guide price of ₤4.5 million was launched on the London property market. The penthouse was developed by Oakmayne in partnership with Northridge Capital and it overlooks Oxford Street in Mayfair London W1. It features a private roof terrace, large entertainment space and lift.

“This luxury penthouse set in the heart of the West End offers a truly unique opportunity for residents to enjoy the very best of what the capital has to offer,” Shirley Humphrey, director at Harrods Estates has said, as quoted by the Property Report. “The contemporary interior designed by Lambart & Browne complements the lateral living space of this stunning penthouse in the Verge Mayfair, a development which continues to generate international interest.”

By James Navarro de Paz
James is one of our real estate development analysts. James ensures we're constantly reporting on the latest information regarding Real Estate Investment Trusts (REITs).

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