Prime Real Estate: What lies ahead in 2023 with Zoe Dare-Hall and Mark Tredwell

It’s incredible to think that this time last year, we were still officially in lockdown. It’s also a sobering reminder of what a year it has been, given a backdrop of the ongoing war in Ukraine, rising inflation and interest rates and political upheaval – all of which have impacted London’s prime property market. 

Anyone who has embarked on a development or renovation project will have faced supply chain delays, rising construction costs and a lack of builders. The shortage of prime properties to buy or rent – along with continued economic and political uncertainty - has forced many would-be movers to stay put.

But many have also profited from these macro events. The pandemic has seen great wealth creation among the world’s richest. Although most forecasters expect prime London property prices to dip this year, the capital retains a safe haven allure for investors compared with the volatile crypto and stock markets. When Knight Frank estate agency asked global UHNWIs which city they were most likely to invest in the coming two years, London came out top. And Americans have been on a property shopping spree in central London since the dollar hit a historic high against Sterling last September.  

So what does 2023 hold in store? For REDD, it has begun with a bang. 7a Charles Street, the brand’s latest development, launched to market and has seen an unprecedented number of enquiries. “People are taking the view that they need to get on with it rather than sit on their hands any longer, but it’s not all Americans walking through the door. There isn’t just one type of buyer,” says Mark Tredwell, REDD’s head of development. 

Some are simply tired of spending months in hotels on their London visits and choosing to invest instead. Others have made tech fortunes or are international students from wealthy families. What unites them is a desire to have a high-spec home in a prime location, and the turnkey offering will continue to do well this year, predicts Tredwell. “Buyers don’t want to wait years to get listed building consent or deal with escalating construction costs. Everything has to be perfect. For us, we only get one chance to impress.” 

It's not just super-prime buyers, however, who expect perfection. London’s super-prime rentals, costing £5,000+ a week, are also in high demand and short supply, as years of stamp duty rises and economic certainty push some UHNWIs towards renting for a few years rather than buying. And there is no longer an assumption that they will be of a lower-spec than their equivalent for sale. “No element of the design should be compromised,” says Tredwell, whose 6 Charles Street in Mayfair project, with 11 rental apartments is hotly anticipated this year as the brand gains further recognition for its development calibre, rental will include a day concierge and a grand hotel-style entrance lobby. 

This type of hotel-style living will continue to feature large in London in 2023, not least with the completion of two of the capital’s most high-profile branded-development schemes, The OWO, with a Raffles-run hotel and residences, and The Whiteley, a collaboration with Six Senses. 

Large luxury developments increasingly offer a raft of hotel-style amenities and services as part of the all-round lifestyle offering that buyers expect. REDD’s projects are small in comparison, but where space permits, additional amenities are still an important factor. One Palace Green – an 1800s building with a regal heritage, which is being redeveloped as six apartments – will combine “the full-service offering”, says its designer Martin Kemp, with “a grandeur and value that make it stand out in today’s marketplace”. 

Kemp mentions designing bespoke furniture, hand-carved murals and tech-focused gym spaces in recent projects, but the key thing, he says, is that such amenities occupy spaces with the same level of quality and craftsmanship as the apartments. It’s not so much about trend-led but “timeless” design, he feels. 

That sense of integrity also lies behind REDD’s approach to marketing properties in 2023. 7 Charles Street in Mayfair, a turnkey Grade II listed, launched off-market pre-Christmas and has now launched formally (on the market) in February for £12.5m. For him, it’s all about discretion. “There are search agents in the market who will quietly place the sort of buyers who don’t want other people seeing photos or the floorplans of their property and getting in early allows for that confidentiality ” he comments.

Right now, these people are probably still escaping the British winter in Gstaad or the Caribbean. But once back in London, they’ll find life is back to full speed, and Mayfair, which is enjoying a renaissance thanks to new high-end residential schemes including those in Grosvenor Square, is a “bubble” they will be looking at in 2023. “Now people are back in the office, they’re walking around, making all those connections and those touchpoints,” Tredwell comments. How hard that would have been to imagine, one year ago.