Our capital used to be a city with a reputation for low rise buildings, but the development of properties such as The Gherkin and The Shard has seen London’s skyline become populated with much taller architectural wonders. With 70 new skyscrapers currently under construction and nearly 200 more planned, London is looking set to become a high rise city.
One of the skyscrapers currently being erected is the Aykon Tower, which will provide 360 apartments within its 50-storeys. This new development boasts some of London’s most lavish living spaces, with interiors designed by Versace Home. Those who are lucky enough to take residence in the extravagant tower will have access to on-site facilities including a state-of-the-art gym, swimming pool and cinema. This level of luxury doesn’t come cheap though – prices start at £700,000 and parking spaces cost an extra £50,000.
While these apartments may seem unobtainable for the average London family, a deal made between Lambeth Council and DAMAC Properties, the tower’s developer, guaranteed that 90 of the homes would be made available at affordable prices to local families with rent levels far below the current market rate. However there is a catch, those who live in the 90 apartments will not be able to access any of the towers exclusive amenities, nor will they be able to use the main entrance.
While the sudden influx of luxury skyscrapers rising along London’s skyline is good for foreign investments and successful professionals, who can afford to spend over half a million pounds, what does it mean for the property market itself?
Well for starters, estate agents may be able to make more of a profit than they had originally thought possible. Companies involved in real estate know their market and they also know that while they continue to make fantastic profits off the apartments, they can also demand more money for their time.
The revenues made from selling these new high rises will allow estate agents to charge more, which in turn may increase the average salary for professionals in the sector. Between 2007 and 2009 the average wage for a New Homes Sales Negotiator peaked at £23,000, but it would not be surprising to see the average salary reach £30,000 by 2016 thanks to these new developments.
A raised wage is an attractive prospect that may see more professionals within the property sector move to solely dealing with new homes and development sales. When you compare figures recorded between 2007 and 2009 to those recorded from 2013 onwards, the number of jobs registered with our residential development division (which includes new homes and development sales) has risen 133%. In contrast to this, estate agency jobs, such as Resale jobs, registered on our database decreased by 23%
This may be coincidental, but it could mean that as London’s horizon gets more crowded, those who work within the property market want to follow the trend and help high end, luxury developers sell units in their million pound properties. We will be able to measure the change as more of the planned skyscrapers finish their ascent, but it’s shaping up to be a very interesting time to work in London’s property market.