Penthouse flat is most expensive in London

Penthouse developer says London flat is the most expensive per square foot ever sold. Is it worth it?

Mayfair Apartments in British Land Project Set Price Record

A penthouse flat has been snapped up - even before it has been built - and the developer says that the Clarges Estate Penthouse has become the most expensive per square foot ever sold in London.

British Land told the Daily Mail that the flat had smashed the previous record of £5,000 per square foot. Given that it is expected to be 5,000 square feet, it suggests that the flat sold for £25 million.

The selling price owes much to the location. ITV reported that it will overlook Buckingham Palace, with stunning views over Green Park, in the heart of Mayfair - the most expensive neighbourhood in the country.

The property is unlikely to spare any expense either. There is a rooftop garden, and floor-to-ceiling windows, so that the occupant has every opportunity to enjoy their commanding view. The building will also contain a cinema for residents, along with a spa and swimming pool.

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How does it compare?
To put this into context, Zoopla says the average price per square foot for a flat in England overall is £728, but that this varies hugely depending on where you live. At the more affordable end of the spectrum, a flat in Hull will cost an average of £166 per square foot, while in Middlesborough it will cost £172 per square foot.

Other cities are marginally more expensive. The average price per square foot for flats in central Birmingham is £233, for Manchester city centre is it £242, for central Edinburgh it is £311, for central Oxford it is £462, and for Surrey it's £469.

Once you get into London, you'll pay £812 per square foot. But in posh parts of London, this is where prices go slightly crazy. In Islington flats cost an average of £818 per square foot, in Hampstead they are £1,032, in Notting Hill they are £1,297, and in Mayfair they are £1,844.

This new record is more than twice the Mayfair average, because it's such a status purchase. For a billionaire buyer with something to prove, having the most expensive property per square foot is a bonus in itself.

However, this is far from the most expensive flat ever sold in London. This title goes to Penthouse D at One Hyde Park in Knightsbrige, which sold for a record-breaking £140 million. For this sum, the buyer didn't even get the finished product. It was sold with just the bare walls. The buyer will be able to design their own layout and interiors - and pay for them too.

The vast disparity between premium London and the rest of the country is leading most commentators to think that the areas are getting overpriced. However, as this sale demonstrates, there are still plenty of people prepared to pay jaw-dropping sums of cash for properties in the area.

But what do you think? Will these prices keep rising forever, or are they set for a crash?

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