Chelsea is one of the most sought-after neighbourhoods for houses for sale in London, particularly among overseas investors looking for strong capital growth prospects.
Chelsea is located in West London and is bound by the River Thames. Despite its central location, the appealing area has great access to green space, in addition to pleasant walks along the Thames.
Particularly following the COVID-19 pandemic, more people are prioritising being close to parks and gardens, and Chelsea isn’t short of that. There are more than 30 parks managed by the Royal Borough of Kensington and Chelsea.
Chelsea is even wedged between some of the capital’s most iconic parks. Just north of Chelsea is Kensington Gardens and Hyde Park, which are two of the biggest open spaces in London. And south of the River Thames is Battersea Park.
There is an increasing demand to live in Chelsea. With a great selection of schools both state and private funded and the appealing green spaces, families are naturally attracted to the area.
Additionally, with higher property prices and rental prices, more affluent residents usually take up home here. This demographic is often allured by the range of Michelin starred restaurants, and private members clubs and being amongst the area’s well-renowned nightlife and shopping.
A few highlights of the top-notch dining is The Ivy Chelsea Garden, a restaurant, bar and café with a garden, terrace and orangery and Michelin starred restaurants The Five Fields and Elystan Street.
The main shopping area is along King’s Road, which includes Peter Jones, one of the largest department stores in the capital. And the area brings sport fans as well with Stamford Bridge being home to Chelsea Football Club.
Chelsea is also well served by public transportation, attracting professionals to the area. There are a number of underground stations in the borough and within easy reach in the surrounding area. Sloane Square, which is in Zone 1, is the main station with Circle and District line connections.
Residents can even commute via the Thames Clippers at Chelsea Harbour, which offer fast and frequent boats up and down the river. This allows commuters to enjoy an inner city journey with very little traffic.
Across Chelsea, there are a wide range of types of property, from Georgian houses overlooking the river to Victorian terraced houses and detached mansions. The area is also home to a number of larger new-build luxury developments, and more is on the way.
Most people first think of the large striking 19-century red-brick mansions and apartments that line many of the streets in Chelsea. These also often feature scenic garden squares, making for picturesque settings.
The main postcodes of Chelsea are SW3 and SW10, and it also includes some sections of SW1. And the most sought-after areas are near Sloane Square and Knightsbridge tube stations.
With highly sought-after properties, house prices reflect the area’s desirability. The average cost of a home in the Royal Borough of Kensington and Chelsea stands at £1.1m, according to figures from Zoopla. This is higher than the London average of £495,200.
While property prices are high here, property owners and investors have seen strong capital appreciation in recent years, making it an attractive location for property investment. In the past two decades, homes in Kensington and Chelsea increased by nearly £740,000 on average
Additionally, since 2011, house prices have grown by an average of £380,200 alone. Out of any area in the UK, the borough has seen the strongest capital growth throughout the past 10 and 20 years, making it the top area for long-term house price growth.
The area also has a strong rental market with rents also on the higher end. And rents have recently been on the rise in the area as well. Chelsea is one of the areas of Central London seeing the biggest jump in rent prices since last year.
Chelsea has seen considerable attention from overseas investors and is considered one of London’s most exclusive hotspots. With strong capital growth prospects and growing rental demand, it has much appeal as a property investment location.
Currently, there is a low supply of housing in the Chelsea property market and particularly so in the rental market. The Royal Borough of Kensington and Chelsea is one of the smallest boroughs with the most limited number of residential properties. This paired with the strong demand creates a great opportunity to earn capital appreciation.
With strong rental demand, property investors were earning a 3.00% rental yield on average at the end of September 2021, according to research by Chestertons. This is even above the Prime Central London average at 2.75%.
But it’s really the long-term capital growth prospects and the allure of owning a property in one of the most exclusive areas of London that make the area so attractive for overseas investors. And the area is unlikely to lose its prestige and appeal anytime soon.
Get in touch with the expert team at Chestertons Global New Homes to find your perfect property.