The ultra-competitive London housing market means prices are going through the roof.
Trying to find a bargain is an absolute nightmare — property prices in London climbed by more than 90% over the last decade, according to the Confederation of British Industry (CBI).
But luxury London estate agent Rokstone has discovered a trick it thinks can save up to £1 million ($US1.5 million) on a flat — buying a basement or top floor apartment.
Rokstone analysed the buying patterns of 6,000 clients and contacts looking for luxury apartments in London and it found that the most sought after property is a flat on the first floor of a block. 60% of clients want this setup, according to data sent to Business Insider over email, while the second most desired purchase is a second or third floor flat, representing 30% of buyers. Only 5% want a ground floor or lower ground garden flat.
And despite the assumptions of the mega-rich wanting to live in a top floor or penthouse apartment, only 5% of Rokstone’s clients were looking for this kind of property.
Rokstone then calculated the relative price premium of each floor would carry given the demand and estimated prices based on the average London luxury block, where a 2-bedroom flat costs £1.4 million ($US2.1 million).
In its hypothetical block, Rokstone estimates the first-floor flat would go for £1.82 million ($US2.8 million), while flats on the second floor would be worth on average £1.4 million ($US2.1 million). If people go to the ground floor of the same building, an apartment would be a little bit cheaper at £1.26 million ($US1.9 million).
But if people were willing to live in a basement or top floor flat, it would only set them back £980,000 ($US1.5 million). That’s almost £1 million ($US1.5 million) less than a first-floor apartment.
Becky Fatemi, Managing Director of Rokstone, said in a statement: “Just under 55% of all homes across London are apartments making it the most popular type of home in the capital. Our research has shown that some apartment hunters care very much about which floor they live on and so limit their search accordingly.”
“However by not being open minded a flat hunter can miss out on a spectacular home or opportunity. This is why I always advise my clients that there is no right or wrong answer when it comes to which floor is best in an apartment building, in my view each option has its perks.”