More than £11.8bn of development is under way across 62 acres of West Kensington as three major schemes prepare to deliver more than 4,400 homes alongside new offices, leisure and cultural space.
Research from property analytics company PriceHubble identifies Earls Court, Olympia and 100 Kensington at West Cromwell Road as collectively forming one of London’s largest concentrations of regeneration investment.
The report, commissioned by developer SevenCapital, calculates that the three sites could add £3.8bn to the economy of the Royal Borough of Kensington & Chelsea.
It also estimates Earls Court and Olympia will create 32,500 jobs, with the three developments together delivering more than three million sq ft of workspace, hospitality, leisure and retail space.
THREE MAJOR SCHEMES
The largest project is the 44-acre Earls Court regeneration, with a reported GDV of £10bn (main picture).
Plans include 4,000 homes, 2.5 million sq ft of workspace, three cultural venues and 20 acres of parks, squares and public realm. The first phase is expected to run from 2026 to 2030, with the wider development continuing to 2041.
Olympia London is meanwhile undergoing a £1.3bn transformation incorporating 550,000 sq ft of offices, a 3,800-capacity music venue, 1,575-seat theatre and two hotels.
At 100 West Cromwell Road, SevenCapital’s £500m 100 Kensington development will provide 462 homes, including 276 for market sale and 186 affordable properties.
PROPERTY VALUES
PriceHubble says the scale of investment could have significant implications for West Kensington’s housing market.
Average apartment prices in the area currently stand at just over £500,000, according to the research, compared with almost £1.25m in Kensington and £1.35m in South Kensington.
It estimates regeneration could generate an additional annual uplift in West Kensington property values of between 2.2% and 2.9% above the wider borough trend.
The forecast is based partly on comparisons with previous London regeneration areas. PriceHubble calculates that comparable properties around King’s Cross experienced a 2.1% annual regeneration premium during the main 2008 to 2015 redevelopment period, while the Battersea Power Station and Nine Elms regeneration area recorded a 4.5% annual premium against its borough benchmark during the later stages of redevelopment.
However, the projected West Kensington uplift remains a forecast rather than an observed increase and future property performance will depend on wider market conditions as well as delivery of the regeneration schemes.
RENTAL MARKET
The report also identifies a substantial existing rental market, with privately rented homes accounting for around 40% of housing in West Kensington.
It puts average gross rental yields at 4.6%, compared with just over 4% in Knightsbridge, 4.3% in Notting Hill, 4.4% in Chelsea and 4.5% in Belgravia.
Annual rental growth is estimated at around 4%.
PriceHubble says local tenant retention is also high, with around 40% of renters in Kensington & Chelsea moving less than two miles when they relocate.
REGENERATION EFFECT
Sandra Jones, Managing Director of PriceHubble, says: “The new report reveals the scale of regeneration taking place in West Kensington in a relatively narrow ribbon of land between Warwick Road/Redcliffe Gardens to the east and North West Road to the west.
“The scale of the inward investment has the potential to materially reshape the area’s economic, cultural and lifestyle offer, bringing new homes, jobs, amenities and public realm improvements.
“As inner London’s largest regeneration and investment hub progresses between 2026-2041, the West Kensington housing market is exceptionally well placed to benefit from regeneration-led uplift and gradual price convergence with more established parts of Kensington and Chelsea.”
James Moody, Chief Operating Officer of SevenCapital, adds: “Historically the area of Kensington to the West of Warwick Road/Redcliffe Gardens has been overlooked, but West Kensington now provides a compelling opportunity in the local market characterised by genuine scarcity, strong occupier demand and long-term capital growth fundamentals.
“The trio of projects – Earls Court, 100 Kensington and Olympia – are pivotal and will help to transform West Kensington into a thriving new destination for London.”
