Gentrification and the ripple effect
Neighbourhoods similar to New York’s Lower East Side, aptly described by the New York Times as where “gritty meets trendy”, have traditionally been overlooked for more established postcodes. However, recent housing developments, such as the $1bn Essex Crossing Development, are acting as a catalyst for wider gentrification.
Elsewhere, buyers looking for an authentic bohemian atmosphere, coupled with high-quality, good value housing, are turning to areas like Quartier Des Pâquis, Geneva. Alex Koch de Gooreynd, partner at Knight Frank, predicts this artisan quarter is poised to “outperform the rest of the city by some margin over the next five to ten years”, paralleling the transformation to that of London’s Notting Hill in the 1970s.
Buyers might be surprised to see long sought after locations, such as Mayfair, London, which provide some of the most stylish housing in the world on the value hunter list. However, relative value p/sqft redefines the postcode as more financially accessible and the arrival of some of the world’s most prestigious developments secure its position. Cosmopolitan neighbourhoods similar to the 10th Arrondissement, Paris, which are centrally located yet offer lower property prices are popular with creative industries. Hip inner city areas such as Woodstock, Cape Town, which are offering Urban Development Tax Incentive schemes, are seeing average property prices sharply rise to R2.2m. Alternatively, buyers looking for a beachfront location should consider the South Coast, Barbados with new projects such as the Capri development.
With the recent boom in the technology and creative industries, high-tech sectors are shaping the residential and cultural landscape of neighbourhoods. Zhangjiang, Shanghai, previously known as a manufacturing and industrial area, has transformed into a major residential community as an IT hub. Mumbai’s largest tech firms are queuing to set up offices in the previously overlooked area, Majiwada-Kasarvadavali, resulting in an influx of tech HNWI’s and rapid improvement to social infrastructure. Mediaspree in Berlin, where hip clubs sit alongside Coca-Cola and Mercedes Benz will see its first high-rise skyline due to a surge in housing demand.
Regeneration and expansion of public works, including major train lines, roads, airports and hospitals, are attracting developers and residents alike to urban and suburban areas. Notable development to infrastructure has cemented Dubai South as the emirate’s flagship urban project, with the highly anticipated first two residential communities due to complete 2019. Neighbourhoods such as South Main, Vancouver, seen as a gateway to downtown have seen recent land banking as developers anticipate growth alongside improvement to transport connections.
For the full list and details of the 20 neighbourhoods, refer to pages 36-40 of the Wealth Report.