Billionaire house owners, hoteliers and property developers are pumping an estimated £1.36 billion into a neighborhood of London’s West End.
The parcel of land between Upper Belgrave Street and Grosvenor Place in East Belgravia is undergoing a construction boom due to low prices and lack of planning restrictions, according to a new report by luxury property specialists Beauchamp Estates.
“There are five distinct enclaves within Belgravia, each with unique characteristics, and the most significant hotspot for new development is East Belgravia,” said Jeremy Gee, managing director at Beauchamp Estates.
“The other enclaves are restricted by listed building and conservation area status. Wherever supply is constrained compared to demand it helps to sustain capital values and this is why Belgravia property values have outperformed the rest of prime central London.”
The names of the ultra high net worth individuals who have recently invested in the area include two sheikhs, an American billionaire and a Ukrainian oil mogul.
Sheikh Hamad bin Jassim Al Thani, former Prime Minister of Qatar and member of the royal family, bought Forbes House within Belgravia’s billionaires strip last year for around £150m and is developing a £300m property. Once completed, it will be London’s most expensive private mansion.
U.S. billionaire Ken Griffin, the CEO of investment Citadel, has bought a £100m penthouse at the new Peninsula London Hotel.
Other investors in the area include Sheikh Ahmad Al-Sabah of Kuwait–who owns a £36m house in Belgrave Square–and oil and gas magnate Gennadiy Bogolyubov, who bought a £60m 10-bedroom villa nearby.
The Beauchamp Estates report highlights the fact that despite being larger than neighboring areas Mayfair and Knightsbridge, the 200-acre Belgravia historically saw less new development.
It is also cheaper than its surrounding areas: according to Beauchamp Estates, the entry threshold for prime property in East Belgravia is £5.4m, compared to £5.8m in Chelsea, £8.2m in Mayfair and £12m in Knightsbridge.
The report lists eight live developments in East Belgravia, including the £500m Peninsula London Hotel, which will provide between 24 and 28 apartments and penthouses; a luxury scheme at 6-7 Grosvenor Place, planned for either a VIP club or a lavish house; and a new development opportunity at Headfort Place, currently up for sale for £6.5m.
The latter has planning permission for a new 3,800-square-foot six-storey luxury townhouse designed by Adam Architecture.
Follow me on Twitter or LinkedIn. Check out my website.
I am a business reporter focusing on real estate, retail and technology. I am currently Chief Investigative Reporter at Property Week, where I lead the magazine’s investigations unit. I have been nominated as Best Print Writer at the BSME Awards in 2019 and 2018 and as Best Journalist – Infrastructure, Development and Construction at the British Journalism Awards in 2017. Prior to that, I worked as a freelance for a number of publications across the U.K., France and Italy including The Bureau of Investigative Journalism and La Repubblica. I hold an MA in Investigative Journalism from City University of London and an MA in French literature from Ca’ Foscari University of Venice.
Source: The £1.3 Billion Splash Out In London’s Billionaire Strip