Is there re­ally such thing as the ‘Waitrose ef­fect’?

The Daily Telegraph - Property - - Front Page -

uplift on cen­tral Lon­don house prices (com­pared with the bor­ough av­er­age) that have a ma­jor amenity within 550yd. “What our re­search high­lights is just how much a well­known depart­ment store, a Miche­lin-starred restau­rant or a world-class ho­tel or univer­sity drives value in an area, far more than prop­erty it­self,” says Luke Mills, CBRE’s head of UK sales.

Oddly, per­haps – given that if you live lo­cally, you don’t need to use one – a fa­mous ho­tel boosts house prices more than any­thing. Prop­er­ties within 550yd of Claridge’s, the Dorch­ester and the Ritz are 85 per cent more ex­pen­sive than the bor­ough av­er­age, ac­cord­ing to CBRE.

One rea­son is the ameni­ties, which are of­ten avail­able to the pub­lic. But the main rea­son is the seal of ap­proval a bou­tique or big-brand ho­tel brings to an area. “Ho­tels are rarely pioneers; they open in ar­eas that are al­ready es­tab­lished. But they will choose an area with a proven busi­ness com­mu­nity – which is also aligned to the in­ter­ests of prop­erty in­vestors seek­ing ten­ants – and a tourist trade, which means the area has the life­style and ameni­ties that makes it a nice place to live. A ho­tel un­der­pins those driv­ers of value,” says Mills.

The price-boost­ing po­ten­tial of a par­tic­u­lar amenity is harder to de­fine Trump.) One amenity may put an area on the map – but a crit­i­cal mass of pop­u­lar bars, restau­rants and shops is the real game-changer, turn­ing a neigh­bour­hood into a des­ti­na­tion in its own right, Mills adds.

“Those who live there don’t want to leave and those who don’t live there want to visit. That’s when the res­i­den­tial premium re­ally kicks in.”

Here’s a look at how prox­im­ity pre­mi­ums might af­fect house prices where you live – or would like to.

The new Ivy at One Tower Bridge, left

Damien Hirst’s Phar­macy 2, right, is a boon for Nine Elms

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