It’s not every day that you are invited to value a property which doesn't actually exist. However, a recent request to provide an estimation for a 1,000 sq ft apartment situated in a prime W1 address asked me to do exactly that.

So what was the property in question? It was none other than The Residence, John Lewis Oxford Street’s new fully furnished in-store apartment overlooking Cavendish Square.

One of three in the UK, the apartment was created to offer customers the ultimate try-before-you-buy experience, with everything in it exclusively available for sale. It comprises an expansive living/dining area, fully furnished kitchen, bedroom and study, indoor terrace and even clean-air plants and orange trees, fresh from the nursery at the company’s Hampshire estate.

John Lewis wanted to know what a possible asking price might be for a comparable property in the locality.

Expansive living/dining area at The Residence

There are various factors that contribute to a valuation and despite this being fictional in its sales sense, the same methodology applied here as it would for any other home. Location, condition, size, position within a building and additional amenities are the main pillars on which a valuation rests and all were taken into account to provide a realistic valuation for The Residence.

Local market knowledge is, of course, fundamental when determining a potential sale price. An agent will be acutely aware of the most sought-after locations, streets or areas within a neighbourhood and the sold or record prices achieved within the locality. In the case of The Residence, there are only a handful of garden squares in Marylebone and only a small number of residential properties on each one, so a premium could well be attributed to The Residence’s value for this reason alone.

In this part of town, almost half of our buyers are purchasing a second home or a pied-à-terre and therefore tend to want a property in great condition that can be moved straight into. The specification and interiors at The Residence chime with what buyers here are looking for and this is therefore another key factor in calculating its value.

Everything at The Residence is for sale

Similarly, buyers who aren’t permanently based in London are often after a lock-up-and-leave apartment with porterage or a concierge. Only a handful of buildings in Marylebone have these services, so the fact that The Residence has them too is another marker on its value.

Size is also a key consideration. At 2,000 sq ft, The Residence is considerably larger than other one-bedroom apartments locally. Its situation within the building – it's located on the fourth floor – is another factor in its estimated worth as the apartment’s elevated position means that a buyer would have views of a historic garden square in the centre of London.

All this considered, the final piece of the puzzle was a review of what’s currently on the market to act as a direct comparable as well as the nearby properties that’ve set sold records or benchmarks.

So what was my valuation? If it came to market today I estimate that The Residence could set an asking price of around £2 million.

Further information

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