The Skyline of London Will Rise in the Next Decade.

According to a new study by Knight Frank, EC Harris, and Barton Willmore on tall residential and mixed-use buildings in London, a new wave of residential towers is expected to re-define London's skyline. propertyfinder

The study addresses the unique planning, design, and funding problems that come with building tower schemes, including the increased costs of building 'up,' but also shows that, when constructed to the correct requirements, there can be a strong cost versus value advantage of building higher in some locations across London's predominantly low-rise skyline.

The price per square foot in a residential tower in London usually increases by 1.5 percent per floor, excluding penthouse apartments. As penthouses are factored in, the average increases to 2.2 percent.

The cost of building 'up' incrementally increases the most in the 25-40 storey range.

There are currently 25 projects in London that have one or more residential or mixed-use towers under construction.

Planning approval has been granted for a further 78 schemes.

Funding is also a major concern, with several companies requiring extensive pre-sales.

Despite widespread political support for the advantages of tall buildings, obtaining planning approval can be challenging.

Towers are now a key feature of London's planning pipeline, according to a unique map of all recently built schemes, as well as schemes like residential and mixed-use towers that are under construction or in the planning or pre-planning stages around the region.

The report also discusses the factors that influence demand for tower developments in London, before predicting how new sustainability rules will alter the appearance of towers in the future. Finally, it illustrates how the Shard, Europe's tallest residential tower, compares to some of the world's tallest structures.

"This is London's decade of towers," says Stephan Miles-Brown, Head of Knight Frank Residential Growth, "with residential land prices up 20.3 percent in the last twelve months and a population boom, a need for the most productive use of space is evident." However, only 30% of the tower projects with planning permission are in the works, which is partly due to the difficult funding climate. The well-designed, centrally positioned towers that will thrive in the coming years will have a certain cachet - the strong premium for living at the top is a major factor in the construction of a tower."

"We are continuing to see a dynamic inter-relationship between land prices, construction costs, and sales values on many high-rise schemes," said Paul Cohen, Partner at EC Harris. The importance of well-planned sensitivity testing of varying heights, building shapes, and efficiencies is critical to project optimization."

"In a vibrant city like London, tall towers operate and are known as having a significant role to play," Chris Brett, Partner at Barton Willmore, added. They encourage thousands of people to live and work in the central zone and near major transportation hubs, and they have tremendous power to redevelop the surrounding area. Away from the central business area, we are seeing an increase in the number of tall buildings. New developments in Lewisham, Chelsea, and Hackney demonstrate both government support and business demand for tall structures."