Finding Harrods a little out of the way on your morning commute and thinking of moving a little closer? Well you might have to think again. A recent study has shown that a house within 360m of what is arguably the world’s most famous department store is worth an average of £2.4m; that’s 94% more than in the rest of the borough of Kensington and Chelsea.
Properties Sold For £2,149 per square foot
On average, a property sold between 2011 and 2014 within 360m of Harrods sold for a colossal £2,149 per square foot, and asking prices have risen to double what they are for the rest of the borough.
“Harrods Effect” Follows the “Waitrose Effect”
Labelled as “the Harrods effect” by some observers, it closely follows the “Waitrose effect”, where houses with a Waitrose in the area cost 25% more than the UK average. Such a figure was exacerbated in London, where it rose to 50%.
Located to the south of Hyde Park, Harrods has become the department store of choice for the mega rich; particularly those visiting from overseas. With the ability to be able to walk to the store seen by many as the ultimate luxury, it is no wonder prices are so high.
Typical buildings around the department store include second-hand mansion buildings on Brompton Road, although these are mixed with new, ultra-luxury developments such as The Knightsbridge.
The “One Hyde Park Effect”: Here to Stay?
Since 2011, the report has claimed that 2,000 homes (many of which are apartments) have been sold within a 20 minute walk of the store, with the properties worth a combined £6.1bn. Within a 5 minute walk of the store, 215 properties have changed hands. In the One Hyde Park apartment complex, one of the most expensive and sought after postcodes on the planet, one penthouse apartment has sold for £140m.
The so called “One Hyde Park effect” that has stemmed from this appears to be far from just a flash in the pan, with houses in Belgrave Square and the surrounding area also continuing to surge in price, and the entire Knightsbridge market continuing to soar.