SURGING residential prices across London’s West End have led to a huge increase in the number of offices being converted into flats, with £1m now only stretching to a studio or a small one bedroom in Mayfair, according to new data released yesterday.
Wetherell’s new West End residential development report shows that sky-high prices for ownership have driven demand for new residential neighbourhoods in St James, Fitzrovia, and Tyburnia – the area surrounding Paddington and Bayswater.
With London house prices continuing to increase their lead over the rest of the UK, the study also found that the average cost of a new West End residential development has reached an average of £1.18m — about six times the average price outside the capital. The price has risen by a huge 25 per cent since March 2012, and translates to a £27 increase for every hour of every day throughout the period.
Mayfair commands the highest property values in the West End with an average asking price of £1,824 per square foot, up to £4,500 per square foot for some of the prime properties. St. James and Marylebone districts come second and third with £1,527 and £1,209 per square feet respectively.