The focus of the locus
If we talk about prestige, then for several years now the rating of districts looks like this: Knightsbridge, Chelsea, Kensington, Belgravia and Eaton Square. At the same time, the first three districts are more saturated with new buildings, and the last two are the most promising for those who want to buy a house with a history. Apparently, this peculiar hierarchy will not change in the near future. Russian Russian buyer Tatiana Baker, head of the Russian department at Harrods Estates, said: "about 90% of Russian buyers today prefer to purchase real estate not just in the very center of London, but in the most prestigious core of this center – within a radius of about 1 km from the Harrods department store in Knightsbridge."
The prospects for the Docklands area are less clear. According to some experts, this rapidly developing area with modern residential complexes and business skyscrapers is the city of the future, due to its thoughtful architecture, convenient infrastructure and proximity to the business center of London. According to others, the investment attractiveness of the area is ambiguous. Here is Tatiana Baker's opinion: "For the same money, you can find an apartment in more central areas with the same amenities. At the same time, the construction of new buildings in Docklands continues, which means that in a few years the choice of real estate in it will be quite wide. So the price increase here will be much more modest compared to the most central areas."
For rent – forever?
As in no other country, the value of real estate in the UK depends on the form of ownership. Only a tiny percentage of London real estate can be transferred to the full ownership of the buyer (freehold), which means unlimited right to both the building and the land on which it stands. Most of the properties are sold on leasehold rights, which implies ownership of real estate and land lease, the term of which varies from 20 to 999 years.
When buying historical real estate, as a rule, the lease agreement has to be renegotiated quite often – once every 20-25 years - and for a very substantial amount. It can be said that the more central the property is, the more problems associated with leasehold are experienced by its owners. In new buildings, the contract is valid for much longer – at least 125 years, which is a lot for the UK. In general, this is a complex system, with many nuances that an untrained beginner is usually unaware of.
"Russians, of course, love the luxurious stucco of beautiful 19th century buildings with columns and spacious rooms. Choosing such an apartment is stylish and, undoubtedly, prestigious. But as soon as it comes to practice, most people begin to doubt the correctness of the choice, – says Tatiana Baker. – First of all, it is simply difficult for Russians to understand what a leasehold is, not to mention a lot of legal subtleties. From a financial point of view, buying in a historic house may initially look cheaper, but in the end it turns out to be much more expensive, because it constantly requires new investments."
On average, the cost of 1 sq. ft. in a new building in the central districts is about 2,000 pounds. And on the secondary market, even in a Victorian house, you can buy an apartment from 1,000 pounds per 1 square foot – if some repairs are required, and for about 1,500 pounds per 1 square foot - if it is in excellent condition.
Habits of a broad soul
Numbers are numbers, but when choosing between a new building or an apartment in the spirit of antiquity, there are many other, more subjective factors. For example, the layout of the apartment and personal feelings in the new space. It is no secret that the advantage of any historical building, whether it is the middle of the XIX century or the beginning of the XX century, is high ceilings and more space, especially on the most prestigious first floor – in our opinion, on the second floor.
The situation is almost the opposite in the construction of modern buildings. The notorious low ceilings, which the beau monde likes to talk about so much, are primarily due to the fact that the height of the building is strictly limited by urban planning standards, and the developer, of course, strives to accommodate as many floors as possible in this height. For Russian buyers, this is always extremely important. "The claims to modern real estate, including London, of course, are related to Soviet stereotypes. What was considered the most prestigious back then? Of course, Stalin's apartments, – explains Tatiana Baker. "And when a more than wealthy Russian comes to a standard London new building, where the layout is adjusted to the millimeter and cannot be changed, and the ceilings do not differ in height by 5 m, but just the opposite, he often turns out to be disappointed."
The situation is about the same with the interior decoration of apartments, which, according to Russians, does not correspond in any way to the concept of "real luxury". Needless to say, English austerity in the arrangement of new buildings sets the tone. And experienced buyers, who have already heard about this state of affairs, are initially set on the need for immediate repairs according to their "luxurious" tastes.
To London for quality
Another aspect of the choice is reliability and safety. The guarantee that a London apartment will not bring a lot of trouble to the buyer in the near future can only be in the case of buying a new building. "Everything is ready and everything is at the highest level in modern residential complexes," explains Irina Miles, director of the Russian department at Savills. "Safety, comfort, the possibility of a carefree pastime – all the most important things have already been provided." Almost all projects have parking, a 24-hour concierge, etc
. The situation in old buildings is not so rosy. "Russians are constantly asking us what kind of partitions are in apartments and whether they need to be changed? – says Tatiana Baker. - In general, this is a normal question, but it feels like buyers have not forgotten the problems with old houses in Russia – floods from neighbors from above, constant repairs." In addition, it is problematic to find even the most prestigious house of the Victorian period, where there is a full set of infrastructure. And we must not forget that the issue of parking for residents of central London is above all, and parking in historic houses is most often problematic.
Apartment for growth
Most Russian buyers purchase real estate in London not for permanent residence. Some people buy an apartment because they often come to London for business or tourism, others take care of growing children, and others simply invest in real estate in an economically stable and legally reliable state. Most often these motives are combined.
From the point of view of investments, experts call new buildings a much more profitable option, which is due to the peculiarity of the modern London real estate market in the segment from 1 million pounds per apartment. The boom in foreign, including Russian, investments has led to the fact that today the demand for luxury housing in London exceeds the supply. The central districts are not able to supply a sufficient number of new buildings, as they are already quite oversaturated in terms of urban space. Therefore, prices for new buildings are increasing at an amazing rate. What has been built in the last few years has already been sold out, and prices for new apartments in the most popular areas of the city have doubled over the past 4 years.
Statistics say that Russian buyers prefer new apartments. "Last year, Russian clients of our company bought only two houses outside the city, the rest were in London, and the vast majority were in new buildings," says Irina Miles, "However, I do not undertake to make any predictions about what type of real estate will be in demand this season. Here, there is an influence not only of the market itself, but above all, of the taste of the buyer. Someone really imagines their London apartment only in the newest and most equipped building, but for someone it is more important to feel involved in culture and history, as well as the peculiarities of the layout of the late XIX - early XX centuries."
The magic compromise
The discussion around new buildings made of glass and concrete and architectural masterpieces of past centuries can last indefinitely, but there is also an alternative, which from all points of view can be called the "golden mean", beneficial from all sides. An example is the new Trevor Square project, located right behind the Harrods department store. The 5-storey building itself has obvious historical value. It was built in the middle of the XIX century. and perfectly conveys the spirit of London at that time. The latest renovation project preserves the entire historical value of the building both externally and internally. Ornate ornaments, ancient stucco and the scope of architecture of the century before last intersected with the most modern interior design of apartments and ideal infrastructure. According to experts, such projects in London are extremely rare, although the trend towardsthere is an increase in their number. "History and modernity have finally crossed paths," experts say.
Is this an attempt to create housing that is ideal by the highest standards of luxury? Maybe. At least, this is a good example of combining culture, the "spirit" of the building and the latest technologies. Apartments in such complexes will be satisfied by those who are spoiled by modern service, as well as connoisseurs of history and architectural masterpieces.
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