Properties alongside London’s River Thames are highly coveted and buyers, both international and domestic, are prepared to pay a premium for the waterfront homes, according to a report from Savills.
Along the 27-mile stretch of the river that snakes through the capital, buyers are willing to pay an average of 14.6% more for an existing flat located within 100 meters of the riverbank, compared with those up to one kilometer away, the London-based estate agents said this week.
More:19th Century London Bottling Factory Gets New Life as Apartment Complex
Flats make up a large amount of the housing stock along the river.
Buyers perusing the central stretch of the Thames, between Putney Bridge—linking Putney on the south with Fulham to the north—and Waterloo Bridge—linking the South Bank to Covent Garden—can expect to pay a premium of 22% for existing flats on the north bank and 28.2% to the south.
The southwest section of the Thames—the only section of the Thames dominated by large period houses as opposed to flats—commands the highest waterfront premium, and buyers can expect to pay 28.4% more there than for a property located further inland.
To the east, where riverfront property mainly consists of industrial and warehouse conversions, the premium is 15.6%.
From Penta:Jaguar’s Long-Awaited Luxury Electric Car Has Arrived
But the waterfront properties aren't immune from the price falls that have been plaguing the rest of the prime London market, according to the Savills.
"Since 2014, house prices across prime London, including those on its waterfront, have been gradually declining," the report said, pointing to stamp duty, political and economic uncertainty and mortgage regulation as the main causes.
"We anticipate that the market will remain price sensitive for the rest of this year and next before a return to growth in 2020," Savills predicts.