Towers are netting London’s residential developers an extra £200 per sq ft for every extra ten floors they add.
Homes on the 31-40th floor were £900 per sq ft higher last year than those at levels 1-10, with values rising exponentially the higher development goes, according to figures by London Residential Research released today at EG’s residential summit.
This equates to an 89% premium for homes at the higher level compared with those on storeys 10 or under.
Starts on residential towers have taken off; 30 were recorded last year compared with five in 2011. Of the 52 residential applications submitted for towers in 2014, nearly half were in Docklands, said LRR, and stacked end to end would reach higher than Kilimanjaro. Widened out to all of London, all the residential towers currently applied for would be three times higher than Mount Everest.
Paul Wellman of LRR said developers were now in a race to the top to build London’s highest tower. “From floors 11-40 you could be paying nearly double those at the foot of the tower,” said Wellman of LRR. “How high will London towers go? A lot higher, it seems, with Newfoundland South Quay Plaza and City Pride all plausibly starting before year end, all in the Isle of Dogs and adding in total more than 200 floors to London’s skyline.
For LRR’s full report on the towers and the London market click here.
