A survey by Wetherell reveals the effect proximity to a restaurant can have on property prices
Traditionally properties above or next to pubs and restaurants have been cheaper because of the noise and smells they tend to generate. A newly published survey commissioned by Mayfair estate agent Peter Wetherell with input from Richard Caring of Caprice Holdings, however, surprisingly reveals that in some cases this isn’t always true.
Concentrating on London’s West End, Wetherell, in association with Dataloft, “analysed the interplay between restaurants and residential property values” using Lonres, Michelin and Square Meal data. Of the results, which are summarised in the chart below, Richard Caring commented:
“A great restaurant like Scott’s or 34 has the power to make an address famous and turn it into a destination. Part of the reason why people choose to live in London’s West End is because of the superb restaurants and private members clubs on their doorsteps, which benefit the local housing market, it’s a win-win for all concerned”.
Peter Wetherell added:
“There are plenty of examples of how good restaurants have transformed an address and helped resi-values increase dramatically. In 2009 there was a big gap in South Audley Street in the form of a neglected office block. Then Richard Caring transformed it into a top restaurant known as 34. This has helped to make the flats in No.33, an adjacent apartment building, extremely desirable and property values jumped up 15% after the restaurant opened. Similarly, the construction of the Twenty-First building with its flagship Cipriani restaurant transformed Davies Street from a place people passed by into a destination. Twelve years ago the penthouse above the restaurant was valued at £1,400 per square foot, it has just resold for £4,000 per square foot”.
“None of our clients would dream of living above or next door to a fish and chip shop, but when that fish bar is Scott’s, it’s the complete reverse. Likewise, we would never promote the fact that a property overlooked a pub or nightclub, however a flat overlooking George or Harry’s Bar is excellent brand association, a good location made even better. Whilst there are no fast food outlets in Mayfair, we do have a hamburger bar; it’s called the Hard Rock Café, and it’s known around the world for its quality”.
Testament to this can be found in one of the most expensive properties currently available in the UK, a 6-bedroomed penthouse above The Wolseley restaurant on Piccadilly. For sale through Knight Frank, this 7,708 square foot duplex is on the market for £47.5 million.
In Chelsea, similarly, even a kebab shop next door did not stop former ambassador Sir Christopher Meyer and his “Chanel-clad” wife from recently purchasing an unrenovated 4-storey townhouse at 17 Lincoln Street. Offers in excess of £2,650,000 were sought and it is understood that the couple paid well in excess of that.
Meanwhile, back in Mayfair, Wetherell are currently marketing a recently refurbished 1,125 square foot sixth floor apartment in South Audley Street – the location of Richard Caring’s 34 restaurant – for £3,750,000. The phrase “dinner at mine” most certainly could take on a new meaning for whomever purchases.
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