Proximity to Harrods piles on the pounds

By Denise Marray Gulf Times/Correspondent/LondonNewly commissioned research by Harrods Estates has examined property sales across Prime Central London over the past three years to  determine whether or not there is any discernible difference in property prices within 5, 10, 15 and 20 minutes’ walking distance from the Harrods store.The research was undertaken by Dataloft which analysed a sample of over 27,500 records of property sales across Prime Central London from January 2011 to the end of March 2014 sourced from the Lonres database. Their findings show that property values in the immediate vicinity of Harrods (within a  5-minute walk) carry a 133% premium in £psf (pounds sterling per square foot)  terms compared to the average for Prime Central London, and even within a 20-minute walk property values are 70% above the average £psf for Prime Central London.  All properties within a 5-minute and 5-10-minute walking distance were located in the prestigious London areas of Knightsbridge (SW1X), Chelsea (SW3) and South Kensington (SW7), with properties in these areas plus Belgravia (SW1W) a 10-15-minute walk away. Properties in Mayfair (W1J, W1K and W1S) and those in South Kensington and Chelsea account for the greatest proportion of sales within a 15-20-minute walk.Proximity to Harrods adds a significant premium to property prices. The average £psf price achieved for properties sold within a 5-minute walking distance of Harrods was £2,149, 133% higher than the average £psf for all properties sold across London (£921) and a premium of 20% compared to the average £psf price of all properties sold within a 20-minute walking distance of Harrods (£1,786).  Properties located 5-10-minutes’ walk  from Harrods commanded a 10% premium while those located more than 15-20-minutes away from Harrods achieved £psf values 11% lower than the average for all properties sold within a 20-minute walk, yet still 72% above the London average. 16% of all properties sold within a 5-minute walking distance have commanded £psf values of over £3,000.The report also shows the ratio of apartments to houses is approx. 6:1 within a 5-minute walk of the store, whilst the average for Prime Central London is under 3:1, and that the average apartment within a 5-minute walk of the store is 25% larger than the average for Prime Central London. The £psf differential in values within a 5-minute walk of Harrods varies by type  of property and is substantially more for apartments than houses.  Apartments sold within a 5-minute walking distance of Harrods attract a 14% £psf premium  over those 5-10-minutes away and a 60% premium over those 15-20-minutes away. For houses, the premiums are 1% and 15% respectively. When sales values are considered, the values are more variable. The average sales price of an apartment within a 5-minute walk of Harrods is £2.99mn, compared to £1.87mn for apartments sold 15-20-minutes away.The average price of a detached property within a 5-minute walking distance is £5.3mn, compared to £4.86mn for those 15-20-minutes away. However, only 31 houses have been sold within a 5-minute walk of Harrods over the last three years. Detached properties within a 5-10-minute walking distance have attracted the highest average selling price of £6mn, with 19 properties selling for over £10mn since Q1 2011.  The most expensive property sold, a 20 bedroom, 22,500 sq ft property on Lowndes Square sold in 2013 for £51.5mn.