As 2023 draws to a close, we’ve been reflecting on shifts and developments within our industry to predict what the new year has in store.
From transatlantic collaborations to the rise of experiential shopping, LA partners Kathryn Archer and Andrew Paulson share their four key forecasts for London’s prime property market in the year ahead.
1. The ‘special relationship’ bears fruit
The strength of the dollar means Americans looking for a base in London are increasingly choosing to buy rather than rent. According to Jo Eccles, Founder and Managing Director of prime central London buying agency, Eccord: “The favourable exchange rate has prompted many American buyers who have been circling for some time to enter the market this year, regularly spending £10 to £15 million upwards on period properties in locations such as Chelsea, Notting Hill, Holland Park and St John’s Wood due to the large lateral space, proximity to good schools and an existing American and international community.”
Once American buyers put down roots in the capital, Jo says, “they really embrace London as their home and are often enthusiastic about taking on major refurbishment projects.” This has led to closer collaboration between British and American architects and designers.
At Lees Associates, we have been delighted to work closely with two American practices on penthouse apartments in Knightsbridge: New York-based Peter Marino, and Olson Kundig, who are based in Seattle. We have also been working closely with San Francisco designers Studio Vara on another central London property.
We have seen many benefits to this type of transatlantic collaboration. A client can continue to work with his or her preferred designer or architect while benefitting from the agility, insight and local knowledge of a practice on the ground. Tom Kundig, Principal, Owner and Founder of Olson Kundig says: “Great collaborators like Lees Associates mean we can confidently take on really exciting work in new and unfamiliar places, because we have the right team to execute the design vision and deliver for our clients. We’re able to be just as bold and ambitious on a project in London as we would be if we were working close to home in Seattle.”
Lees Associates’ 40-year history working within the prime London space gives us a unique understanding of the many complexities of planning and heritage rules. British design is also very much appreciated worldwide, and we are looking forward to taking the elegance and quality of London architecture and interiors across the pond into 2024 and beyond.
One Hyde Park in Knightsbridge, where LA have overseen a number of fit-out projects
2. Sustainability takes centre stage
Sustainable practices have long been central to our approach at Lees Associates, from early forays in reed-bed sewage systems to installing a biomass boiler at a Cotswolds manor house, fuelled by the estate’s annual coppice yield. And while progress within the wider industry has been faltering, we predict that 2024 will be the year that sustainability becomes a central concern.
The built environment is responsible for approximately 42% of annual global CO2 emissions, and as members of the construction industry, we take our role in the future of the planet very seriously. We strive to influence our clients and supply chain to reduce waste and emissions and adopt sustainable practices wherever possible, but we know there is more we can do.
At the start of the year, Lees Associates became a member of PRIME, a collective of responsible businesses committed to generating valuable and sustainable impacts on the environment. As companies operating in the luxury space, members understand the sector’s distinct challenges, and are working together to find ways to offer more sustainable design approaches across the board. We believe this membership demonstrates our seriousness about sustainability while holding us accountable in the steps we continue to take.
As our clients get younger, we have also seen a growing concern for sustainable processes, systems and materials in the projects we undertake. We couldn’t be more delighted, and we look forward to both improving and influencing on this front for many years into the future.
3. Department stores diversify
The unstoppable rise of online shopping means retailers with a physical presence are seeking new ways to tempt the in-person buyer. Retail’s renowned therapeutic effect now owes as much to experience as it does to the purchase.
This pivot is borne out by Lees Associates’ recent work in the UK’s most famous department store, Harrods. The new Harrods lingerie department, installed this year by Kathryn and her team, includes VIP fitting areas and a private suite that can be used by bridal parties, transforming a traditionally perfunctory transaction into a fun and memorable experience.
Over the last 10 years, the target customer age range of major department stores has moved down dramatically to the 21-to-30 bracket, and in-store attractions are evolving to match this shift through a focus on luxury and technology. Some of LA’s other recent projects include the spectacular Perrier-Jouët Champagne Terrace and the Anastasia Beverly Hills Brow Bar, both of which serve to enhance the experiential offering at Harrods.
Harrods’ Lingerie Department (Image courtesy of Harrods)
Selfridges, another previous retail client for Lees Associates, hosts a range of in-store beauty and fashion events, as well as theatrical experiences. This Christmas, the Kit Kat Club, home to Cabaret, is taking over the Selfridges Lounge on the fourth floor. The store also has a lower-ground-floor cinema, children’s attractions and even a skate bowl on the men’s fashion floor.
In 2024, we predict that more major department stores will be looking to attract and retain customers by incorporating restaurants, bars, beauty salons and lifestyle experiences alongside traditional retail areas.
4. Home comforts go to work
Hybrid working has soared since the Covid-19 pandemic as employees enjoy the flexibility of working from home as well as in the office. Over the last few years, Lees Associates has worked with companies who are upgrading their office spaces to provide an environment that is more relaxed and fluid, while still being conducive to work. This trend looks set to intensify in 2024, with teams enjoying complimentary food and drink, entertainment and ‘club rooms’ that their friends can enjoy outside of normal working hours.
We recently fitted out a new office for Motive Partners in Canary Wharf, transforming the 14,000ft² space into a contemporary haven of productivity. The new design combines a sense of openness and light with comfort and relaxation, teaming leather modular sofas and clusters of cafeteria-style seating with discreet meeting booths and hot-desking areas. An area with a bespoke table tennis table and giant bean bags encourages socialising and relaxation.
Our project at Columbus House, home to Motive Partners
The trend for offering home comforts in the workplace looks set to grow in 2024 as companies seek to attract top talent with a dynamic, people-centred working space.