Investors frequently face a pivotal strategic decision: whether to invest in single-unit or multi-unit residential developments. This decision has wide-ranging implications for project risk, returns, and exit strategy, especially within Prime Central London (PCL), where the dynamics differ significantly from the broader UK market.
In PCL, buyer profiles are sophisticated and expectations are high. Contrary to the mainstream belief that multi-unit developments spread risk, a deeper analysis reveals that single-unit developments, when designed and positioned correctly, can offer comparable, if not reduced, risk with an equally high potential upside. At Landmass, our 26 years of experience in PCL gives us a nuanced understanding of both product types, enabling us to structure each opportunity to best align with investor objectives.
2- SWOT Analysis: Single-Unit Developments in Prime
Central London:
Strengths
Uniqueness and scarcity appeal to Ultra-High Net Worth (UHNW) buyers in key PCL postcodes;
Higher price-per-square-foot due to the rarity of large period homes; Shorter overall build timelines compared to complex multi-unit schemes; Typically shorter sales period (single transaction);
Strong long-term value appreciation in historic Georgian/Victorian buildings.
Weaknesses
Single buyer exit increases reliance on one transaction; Dependent on fewer buyers capable of making high-value purchases; Less scalable than multi-unit schemes.
Opportunities
The significant current repricing in PCL creates a buying window with strong potential returns;
Global UHNW demand for unique trophy assets continues to rise; A rising preference among high-net-worth individuals (HNWIs) for turnkey properties that are move-in ready; Since COVID, there has been increasing demand for properties with gardens and quality outdoor space;
Value uplift through exceptional design and unique features.
Threats
Market fluctuations affecting premium buyer sentiment; Longer sales periods if pricing or product misses the mark; Regulatory constraints on modifications to listed buildings.
3- Rethinking Risk in Prime Central
Risk Diversification
London
Outside Prime Central London (PCL), spreading investment across multiple units can help reduce risk. However, this idea does not always hold up in ultra-prime markets. In PCL, where land and development costs are high, the success of a multi-unit scheme depends on selling all units at premium prices. The perceived diversification often masks the fact that the financial model depends on consistent high-value sales, making it no different from trying to sell several expensive single units in the same building.
Understanding the PCL Buyer Profile
Buyers spending £2,000–£4,000 per square foot on a residential unit are usually looking for something unique and high quality. While multi-unit schemes in Prime Central London often offer similar apartments, they still need to appeal to these buyers to achieve their asking prices. This means the challenge of selling each unit at a premium is just as demanding as selling a single high-value property. In both cases, success depends on delivering the right product for the right buyer, requiring a tailored approach to planning, pricing, and positioning to achieve its full potential, which relies on market insight, design excellence, and a realistic sales strategy, making the level of risk comparable between single-unit and multi-unit developments.
Addressing the Perception: Equal or Higher Risk in Multi-Units
Many assume that having more units automatically lowers the risk. But in Prime Central London (PCL), both single-unit and multi-unit projects carry their own challenges. In multi-unit developments, each apartment still needs to sell at a high price, and the overall sales period often becomes longer as more units are added. What may seem like a spread-out investment is, in reality, a collection of individual sales, each depending on demand from a pool of high-end buyers. Just like with a single-unit project, the success of a multi-unit scheme depends on pricing, timing, and buyer interest, making the overall risk level similar for both approaches.
4- Single-Unit Projects: Rarity, Prestige, and Value
The Appeal of Georgian and Victorian Homes
The grandeur of period homes in PCL offers a distinct advantage: they cannot be replicated. With no new builds possible on these iconic squares, these properties grow in value through sheer rarity. Their architectural features—ceiling heights, facades, craftsmanship—continue to attract wealthy buyers seeking heritage, space, and exclusivity.
A Tailored Investment Approach
Landmass assesses each opportunity—whether multi-unit or single-unit—through stress testing and market analysis. For instance, for a single 10,000 ft² unit priced at £3000/ft², a 9- to 12-month sales window is typically planned. When compared to a multi-unit scheme of similar investment size, the timeline to achieve returns is often longer, as multiple premium sales are required.
5- Conclusion
Both single-unit and multi-unit developments can offer strong returns in Prime Central London. However, the common belief that multi-unit projects automatically reduce risk does not always apply in this unique market. Space is tight, planning rules are strict, and building costs are high. While these challenges add pressure, they can also create opportunities, especially for developers who understand their product, their buyers, and the financials behind each project.
Through in-depth knowledge of buyer behavior, careful planning, and a commitment to quality, large single-unit developments, especially in rare and historic properties, often offer not just comparable but superior investment outcomes, as buyers willing to pay £2,000 to £4,000 or more per square foot are typically seeking something truly special and unique. At Landmass, we approach each opportunity with the diligence and care necessary to maximize returns while safeguarding investor capital, regardless of scale.
Appendix
Single houses sold for over £3,000/sqft in the last 18 months.
