Michelin Stars And Property Prices

Oct 8th, 2013 | By | Category: House Key, Portfolio, Residence

Fine Dining Establishments Can Increase The Value Of Neighbouring Properties By 20%

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Forget about trying to get a table at the best restaurants in the West End you need to be buying property close to it! A report by Wetherell in association with Dataloft has concluded that high quality restaurants can make an address sought after and help enhance residential property values by up to 15%-20% in the immediate locality. Where as properties that are close to fast food outlets have a 15%-20% decrease in their value. Below is a summary of the findings.

The survey focused on five of the six districts that comprise London’s West End: Mayfair, Marylebone, Fitzrovia, Soho and St James’s. It reveals that Mayfair has the highest property values in London’s West End, with prices for flats currently averaging £1,953 per sqft. These expensive properties are located alongside London’s top restaurants, since Mayfair has the highest number (20) of Michelin-star restaurants in the West End (69% of all Michelin West End outlets) and 65 other restaurants. Mayfair boasts a host of famous brands including Le Gavroche, Scott’s, Maze, 34 and Nobu. Crucially, there are no high-street-chain fast food outlets in Mayfair and only 2 on its southern (Piccadilly) and northern (Oxford Street) borders.

In contrast, Fitzrovia and Soho have the lowest property values in London’s West End, at £1,130 per sqft and £1,283 per sqft respectively, and also have the highest number of fast food outlets, 14 in Fitzrovia and 18 in Soho (representing 33% and 42% of all West End fast food outlets respectively).

When speaking on the subject Richard Caring, Charman of Caprice Holdings said: “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.”

This sentiment is shared by Peter Wetherell, Managing Director of Wetherell, he goes on to say “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”.

Perhaps now some may think about Michelin Stars and buckets of chicken before they decide to where to purchase property!

www.wetherell.co.uk

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