Thinking conversions through
Over the past five to 10 years, there have been well-documented reports of the increase in foreign buyers procuring apex properties in London and the south-east of England. Record-breaking sales prices seem to be a regular occurrence now and almost every month the press announces a “new record” price for a large house in London’s Kensington district or a penthouse in Mayfair. This has provided developers with a very clear and somewhat risk-free avenue to maximise their profits and investor returns. This, in turn, has created a ripple effect that has increased property prices throughout the British capital and beyond.
However, in the past six to 12 months an increasing number of central London developers are seeing fewer opportunities for residential development and more opportunities for office development. Ultimately, instead of converting an office block into a luxury block of apartments, the better option may well be to retain as offices and re-sell or lease back to