Bayswater is one of seven neighbourhoods surrounding Hyde Park, and there are few pockets of prime central London with as much potential for change.

Historically, residential development in the area has been scarce, and its share of super prime new build even rarer, accounting for just 8 per cent of all £5m+ sales there since 2016. This compares to an average of 28 per cent for its six parkside neighbours.

But values are on the rise, along with its profile.

The median £psf in Bayswater was just over £1,300 based on sales in 2022, contrasting with an average of almost £1,800 elsewhere around the park. However, this represents an increase of around a third over the past decade with price growth accelerating more recently.

It has seen the strongest £psf value increase since 2019 while the more traditional prime areas of Knightsbridge and Belgravia have seen values fall.

Bayswater represents better value compared to its Hyde Park neighbours but prices are heating up...

This growth coincides with changes in the area including proximity to the new Elizabeth line at Paddington and, crucially, a £3bn private and public regeneration programme, signalling a level of commitment and investment not previously seen. The area also benefitted from buyers looking for more space for their money during the pandemic and a desire for green space nearby.

Past evidence tells us that central London regeneration, done well, can unlock value barriers. Take Marylebone, where outperformance of the wider prime central London market can be partly explained by its continued investment in the public realm, retail offering and local community. The high street has significantly increased its retail coverage since the early 2000s, with a migration towards more upmarket brands. The Howard de Walden estate now controls c.80 per cent of the high street, allowing for a joined-up, strategic approach.

In Bayswater, high profile residential schemes Park Modern, The Whiteley and No. 18 Porchester Gardens are game changers, offering aspirational living, revamped retail, and a world-class hotel and spa. And a number of developers have identified Bayswater as a growth area for high-end residences.

Source: Savills using Molior

As a result, there are 273 private new homes set to be delivered over the next five years, alongside a number of sites currently being considered for redevelopment.

With improved public spaces, greater connectivity and new build development, Bayswater is well on the way to catching up with its prime London neighbours.

Further information

Contact Katy Warrick or Sophie Tonge