The 625-acre area of green space is the epicentre of the prime central London residential market and properties located close to the park can achieve large premiums.
Residential prices in W2 grew by 27 percent less than other postcodes adjoining the park, including W8, SW7 and W1K, in the ten years to June 2014.The Knight Frank Residential Research Report indicates that while many of London’s globally renowned addresses and developments, including Kensington Palace Gardens, One Hyde Park and The Lancasters are located close to Hyde Park’s seven-kilometre perimeter, price growth in one area to the north-west corner of the park has not traditionally been as strong as its near neighbours.
This area of the W2 postcode, which includes the districts of Bayswater, Paddington and Queensway, has a less prestigious history than some of the world-renowned property markets further south, which has occasionally led to the informal label ‘the wrong side of the park’.
Residential prices in W2 grew by 27 percent less than other postcodes adjoining the park, including W8, SW7 and W1K, in the ten years to June 2014.
However, what it lacks in history, it more than makes up for in geography.
The area sits between the established prime residential markets of Notting Hill in the west and the Hyde Park Estate in the east. According to the Report, growth in both areas has outperformed the prime central London average in the last two years, as buyers seek more value away from markets further south like Kensington and Belgravia, which experienced strong growth during the financial crisis due to their ‘safe haven’ appeal.
In a reversal of what took place last century, Paddington station and the surrounding area is undergoing a significant revival, accelerated by the arrival of a Crossrail station in 2018.
With the affluent Maida Vale residential district further north, and south-facing views of Hyde Park in the opposite direction, the district has arguably the strongest development potential of any prime central London residential market, meaning that in the 21st century, it sits firmly on the right side of the park.
The Report shows that areas to the north-west of Hyde Park average prices are ower than areas further south, where values frequently exceed £5 million.
Demand is likely to grow as new developments appear and prove that high-quality residential property and proximity to Hyde Park is a compelling combination.
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