_Knight Frank launches London W2 report highlighting a parkside area that's on the up
Knight Frank launches London W2 report highlighting a parkside area that's on the up
Intelligence
Running along the northern most of edge of Hyde Park, W2 is an overlooked, ripe-for-regeneration postcode of two halves straddling Paddington, Bayswater and Queensway. Set to be transformed over the next few years with the wider regeneration of Queensway and the arrival of Crossrail at Paddington, savvy investors should set their sights on a prime central London area that's destined for big things in the shape of new homes, hotels, restaurants, retail and public spaces. Why not search for properties for sale in W2?
Average sales prices in W2 stood at just over £1 million in 2020 – 22% lower than average values in Notting Hill, and more than 70% lower than other park-adjacent neighbourhoods such as Kensington and Knightsbridge.
Given buyers’ increased emphasis on access to gardens and green space post-pandemic, particularly those in urban settings, the postcode is well positioned to benefit. Notting Hill and Bayswater have been among some of the strongest performing central London markets through the pandemic thanks to a combination of good local amenity, access to green space and walkability.
Alexander Lewis, partner in Knight Frank’s Residential Development Consultancy team, said: “For decades, those in the know have bought in Bayswater taking advantage of super-prime accommodation for prime prices.
This was largely down to the proliferation of tourist hotels and the absence of any cohesive retail provision. Today, the budget hotels are all but gone, converted into luxury apartments, and the much talked of re-imagination of Queensway is underway led by the Queensway Joint Steering Committee. Those looking for outperformance will be targeting Bayswater.
Above: The new Park Modern development sits at the junction of Queensway and Bayswater overlooking Hyde Park.
"Oliver Knight, Head of Residential Development Research at Knight Frank, added: “The pandemic has underscored the value of residential districts close to parks and open space. Combined with the wider transformation of the area, W2 is one neighbourhood which stands to benefit.
“Our research has found that homes adjacent to one of London’s Royal Parks can command a significant premium. That figure stands at 33%, on average, for a park-adjacent property, while those with a park view can command a greater premium, with a potential 75% average uplift."
Central to the regeneration of Bayswater will be Queensway, with plans underway to turn the street into a destination retail location. At the heart of this regeneration lies Westminster City Council’s reimagining of the public realm through widening the pavements, reducing the impact of traffic and enhanced lighting and landscaping.
Above: Park Modern consists over 52 apartments, 3 penthouses and 2 mews houses
This will be funded through the S.106 contributions of development in the area and includes the creation of a new gateway into the park. A sum of c.£13m has been committed by Westminster City Council for these improvements
On top of this public realm improvement, five key developments are proposed for the street.
- Park Modern (Fenton Whelan/Cheyne Capital)
- The redevelopment of South Queensway (Bourne Capital
- A new plaza at Princes Court (Bourne Capital)
- A new retail parade at North Queensway (GMS Estates)
- A comprehensive redevelopment of Whiteleys (Finchatton/CC Land/MARK).
While the schemes are being developed in isolation, the developers involved are coordinating through the Queensway Joint Steering Committee. The long awaited regeneration of Queensway is now a reality.
For more on information on the W2 postcode download our recently launched London W2 Report, search for properties for sale in W2 or find out more about Park Modern - a brand new development in W2.
Our blog content is provided for interest only. It may be produced spontaneously, without the reviewing and editing often used for more formal publications. It may not be understood by a reader as it was intended. Any views expressed may be the personal view of the writer and do not necessarily reflect the view of Knight Frank LLP. It may include or be based upon information from a variety of external sources which have not been verified by us.
You read our content at your own risk and cannot rely on it in any way. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone for the content or for any opinion expressed and we will have no liability for any loss or damage resulting from any use of, reliance on or reference to the content.
© Knight Frank LLP 2016. Reproduction of our content in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and context within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. Please see our [terms and conditions] and [privacy policy] for more details.
Recent News
Explore by Category