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