Anyone who has shopped for real estate knows that waterfront property is always more expensive to comparative property located inland, but the difference in the United Kingdom (UK) has surprised some real estate analysts. Knight Frank’s new Prime Waterfront Property Index shows that prime real estate on the water is an average of 56% higher and can reach premiums as high as 300% when compared to similar inland properties. The position on the water as well as extras like slips, moorages, docks and beaches can increase value even further. For more on this continue reading the following article from Property Wire.
Waterfront properties in the UK command on average 56% higher prices than their inland counterparts with some exceptional pieces of real estate achieving premiums of 300%, according to a new index.
For many people the lifestyle offered by a house on the coast, river or lake is simply unbeatable and in an effort to measure just how much extra value a waterside location can add to a property, Knight Frank has created a Prime UK Waterfront Property Index.
It found that across the board, prime waterfront properties in the UK are worth, on average, 56% more than their inland equivalents.
Those situated on the edge of estuaries command the largest premium, with an average uplift of 85%, while special features, such as private slipways and pontoons, can often double the value of a home.
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According to Christopher Bailey, head of Knight Frank’s Waterfront team, it’s even possible for premiums of up to 300% to be achieved.
The research shows that a slipway can add an average premium of 128%, a mooring some 117%, a pontoon 108%, access to a private beach 93%, a jetty 77% and a sea view 51%.
In terms of location a property by an estuary commands an average premium of 85%, a harbour some 78%, a costal location 52%, a river location 47% and a lakeside 28%.
Knight Frank also looked at how proximity to prime public space and waterfront settings can affect property values in urban locations around the world.
On average, being near or having views over waterfront locations in an urban setting was found to attract a 38% premium, while the figure for parks was 32%.
The research considered world renowned parkside and waterside sites around the world. Singapore had the highest park premiums with 60% for properties near Taipingqiao Park, while homes on Dubai’s Palm Jumeirah saw the biggest uplift for waterside settings, at 75%. For those benefitting from proximity to both parks and water, the uplift averaged 68%.
Plans to develop London’s iconic Battersea Power Station, which include 3,400 new homes and the first public park to be created in central London in the past 150 years, demonstrate the impact that green space and water can have.
With the site located on the south bank of the River Thames, home owners will benefit from being in a prime waterfront location as well as being close to Europe’s largest urban park, and the properties could therefore attract significant premiums, according to Knight Frank.
This article was republished with permission from Property Wire.
Information for this article was obtained from the Knight Frank blog post, "How much value can a waterfront location add," by Vicki Shiel.