Below we highlight the latest trending news in London’s property scene.
Dubai’s real estate developer DAMAC Properties secures $228.9m bank loan for construction of a 450-unit apartment complex called Damac Tower at Nine Elms. The building located in this district South-West of London will be the first in Europe to be designed in partnership with the Italian fashion house, Versace Home. The 50-story tower will consist of studios, one, two, and three-bedroom apartments in addition to premium finishing and special ‘winter gardens’ that will offer panoramic views of the city. The funding will be sourced from three major lenders comprising of Barclays Bank, which acted as the UK lead bank, Burgan Bank, and Emirates NBD. This property marks Damac’s first development outside of the Middle East. — CONSTRUCTION WEEK ONLINE
According to a report from Benham and Reeves, Londoners are paying premium prices to live near green spaces. Approximately 31% of London is covered by green space. Of this, the borough of Havering (part of outer London) has the largest percentage of overall green space at 59%, while London city offers green space totaling only 5% of the boroughs overall landscape. The report noted that London borough property buyers face a cost of £5,368 for each square meter of park available unlike London city dwellers who pay £245 per square meter of park in their property prices. “But the great thing about London’s market diversity is that living close to green space doesn’t necessarily have to break the bank and when looking to the capital’s peripherals, in particular, you can secure far more green space for a much more affordable property price.” Marc von Grundherr, director of Benham and Reeves said. — PROPERTY WIRE
High property prices and taxes in London drive landlords to buying property outside the city. Hamptons International, a property broker in the U.K, reports that in the last year around 60% of London-based landlords bought properties elsewhere, a rise from 25% in 2010. The average cost of renting a home in London rose by 3.7 % in March 2019 to £1,737 per month. This is 2.3 times higher than renting outside London city. The broker noted that this shift has been prompted by a tax hike in the last year that stipulates payment of £24,600 by residential property buyers compared with £5,330 outside the London. — BLOOMBERG
A new property proposal plan showcases the possibility of constructing 300,000 homes above London railway tracks. The plan drafted by architects Hawkins\Brown, engineering firm Mott MacDonald, and construction group Laing O’Rourke, aims to solve London’s housing shortage amidst scarce land and limited capital. A recently conducted customer service survey on the Clapham Junction is cited in the proposal as a viable option to undertake the initiative. Even though no formal process to make the plan a reality has been initiated, talks are underway between the Wandsworth borough council, Network Rail, and the aforementioned parties. — HOMES&PROPERTY
The London property market ranks as the sixth least in-demand property area in the U.K according to the latest research by Springbok Properties. Attributed to the high property-buyer uncertainty majorly due to Brexit, the findings were derived from the Land Registry data across the UK’s top 200 most populated cities. This was specifically based on the total ratio of property stock listed for sale in addition to those under offer or sold subject to contract. CEO of Springbok Properties, Shepherd Ncube, stated that “With spring now officially sprung, we should start to see the Brexit price growth freeze-thaw, but for those that remain sat on the fence until a higher degree of certainty returns to the market, holding out until summer could see them achieve that little bit extra as temperatures continue to rise.” — LONDON LOVES PROPERTY
Written and curated by David Kuria. He is the uber-curious type. A travel and real estate enthusiast. In simplicity, he covers global real estate news from nearly every angle in addition to market movements in finance, the world economy, and other business trends. Follow him on Twitter.