Knight Frank, the independent global property consultancy, today releases its latest analysis on residential price performance around the home grounds of the 20 English Premier League (EPL) clubs. Three of the top five performers are clubs based in or around London – led by Tottenham Hotspur, followed by West Ham United and Watford.
Ranking highlights
Based on one-year % change (Data to Q4 2015)
• Tottenham Hotspur, who missed out narrowly on the premier league title, claimed the house price growth crown, with 18.4% annual growth in an area that could see a real boost from Crossrail 2, a proposed rail link that would connect North and South London.
• West Ham United, who will see their stadium redeveloped into a residential scheme as they move into the Olympic Stadium, saw the second highest price growth with a 13.2% increase.
Based on mean house prices (Data from Q3 2015 to Q4 2015)
• Chelsea, albeit having a turbulent time both on and off the pitch with the lowest residential price growth (3.9%) among the London-based EPL clubs, topped in another league: that of mean house prices, with the average house price around the ground at £638,000 – over 13 times the value of residential property around Goodison Park, home of Everton FC, who came bottom of the list.
Oliver Knight, Senior Analyst Knight Frank Residential Research, Knight Frank, says, “The findings not only demonstrate the huge differences in value throughout the UK, but also the variety of performance and prices within London, where sub-markets are moving at significantly different speeds.”
With a focus on the leading EPL champion Leicester, Oliver Knight explains, “Similar to a number of property markets across the UK, Leicester has taken a long time to recover from the Global Financial Crisis. Our analysis of Land Registry data shows prices in the city were just 1.2% higher at the end of 2015 than their previous peak in 2007. However, the local economy can expect a marginal boost following the Premier League win – as the profile of the city is raised and money from Europe’s elite football competition comes in.”
Leicester could be set for a windfall, as commercial revenue, TV rights and entry into Europe’s elite Champions league competition boost their coffers. Average residential values around the King Power Stadium in Leicester stood at £127,000 at the end of 2015, following a respectable 6.6% price growth over the year.
According to Deloitte’s annual Review of Football Finances, EPL revenues rose 29% last year from £2.5bn to £3.3bn. Wages have increased by just 6%, far less than anyone expected. In February 2015, the league sold television rights to its games for a record £5bn, 71% above the previous deal. It is projected that from the 2016-17 season, even the bottom club in the league can expect around £100m in central prize money each season (up from £62m now) and the highest earning club can expect around £156m (up from £97.5m).
Most popular clubs among Asian EPL fans
Nicholas Holt, Asia Pacific Head of Research, Knight Frank Asia Pacific, says, “It was a mixed season for some of the English Premier League clubs most popular with Asian supporters: Manchester United, Chelsea, Arsenal and Liverpool.
“While the Manchester clubs saw relatively disappointing on-field performances, residential property around the Manchester City’s Etihad Stadium and Manchester United’s Old Trafford saw strong price growth – growing 9.2% and 8.7% respectively in 2015.
“Liverpool, where mean house prices are second from bottom in the table also saw price growth in the bottom half of the table at 4.6%. Arsenal, who have secured Champions League football for a 19th consecutive season by finishing in the top four, only managed a mid-table finish when it comes to house price performance, with 5.6% price growth in 2015.”
UHNWIs buying football clubs for diversification
Since the creation of the English Premier League in 1992, globalisation and increasing global commercialisation of the brand has ensured its appeal to UHNW investors throughout the world. Asian investors are prominent stakeholders, both in teams in the Premier League, but also the Championship (one tier below the EPL), with Thai Billionaire Vichai Srivaddhanaprabha, owner of Leicester City perhaps one of the most satisfied with his investment as he celebrates the clubs first ever top-tier crown.
From Singapore, Peter Lim, who owns Valencia FC and Salford FC, has been a high profile sports investor for a number of years, while Malaysia’s Tony Fernandes and Vincent Tan have recently had teams in the Premier League, with QPR and Cardiff City respectively.
Nicholas Holt highlights, “As the English Premier League continues to grow as a brand, with record breaking TV and commercial deals making the competition the envy of the world, we expect private wealth looking for trophy buys and the possibility to expand commercial operations into their home markets to continue to look for opportunities to investment into the league.”
One-year % change (Data to Q4 2015)
|
Rank
|
English Premier League Club
|
One-year %change
(Data to Q4 2015)
|
|
1
|
Tottenham Hotspur
|
18.4%
|
|
2
|
West Ham United
|
13.2%
|
|
3
|
Watford
|
10.6%
|
|
4
|
Manchester City
|
9.2%
|
|
5
|
Crystal Palace
|
9.2%
|
|
6
|
Manchester United
|
8.7%
|
|
7
|
Leicester City
|
6.6%
|
|
8
|
Newcastle United
|
6.2%
|
|
9
|
Arsenal
|
5.6%
|
|
10
|
Norwich City
|
5.3%
|
|
11
|
West Bromwich Albion
|
5.0%
|
|
12
|
Southampton
|
4.9%
|
|
13
|
Liverpool
|
4.6%
|
|
14
|
Chelsea
|
3.9%
|
|
15
|
Aston Villa
|
3.8%
|
|
16
|
Everton
|
3.2%
|
|
17
|
A.F.C. Bournemouth
|
3.0%
|
|
18
|
Sunderland
|
2.2%
|
|
19
|
Stoke City
|
2.0%
|
|
20
|
Swansea City
|
1.8%
|
Source: Knight Frank Research / Land Registry
Mean house prices (Data from Q3 2015 to Q4 2015)
|
Rank
|
Stadium
|
English Premier League Club
|
Area
|
Mean house prices
|
|
1
|
Stamford Bridge
|
Chelsea
|
Central London
|
£638,333
|
|
2
|
Emirates Stadium
|
Arsenal
|
North London
|
£519,193
|
|
3
|
Dean Court
|
A.F.C. Bournemouth
|
Bournemouth
|
£378,900
|
|
4
|
Selhurst Park
|
Crystal Palace
|
South London
|
£303,616
|
|
5
|
Vicarage Road
|
Watford
|
Watford
|
£295,074
|
|
6
|
Boleyn Ground
|
West Ham United
|
East London
|
£292,337
|
|
7
|
Carrow Road
|
Norwich City
|
Norwich
|
£196,997
|
|
8
|
St Mary's Stadium
|
Southampton
|
Southampton
|
£193,283
|
|
9
|
Stadium of Light
|
Sunderland
|
Sunderland
|
£161,125
|
|
10
|
Old Trafford
|
Manchester United
|
Trafford
|
£145,448
|
|
11
|
White Hart Lane
|
Tottenham Hotspur
|
North London
|
£140,667
|
|
12
|
King Power Stadium
|
Leicester City
|
Leicester
|
£127,302
|
|
13
|
St. James' Park
|
Newcastle United
|
Newcastle upon Tyne
|
£126,555
|
|
14
|
Villa Park
|
Aston Villa
|
Birmingham
|
£103,466
|
|
15
|
Etihad Stadium
|
Manchester City
|
Manchester
|
£96,000
|
|
16
|
The Hawthorns
|
West Bromwich Albion
|
West Bromwich
|
£91,074
|
|
17
|
Britannia Stadium
|
Stoke City
|
Stoke-on-Trent
|
£79,373
|
|
18
|
Liberty Stadium
|
Swansea City
|
Swansea
|
£74,591
|
|
19
|
Anfield
|
Liverpool
|
Liverpool
|
£70,214
|
|
20
|
Goodison Park
|
Everton
|
Liverpool
|
£48,013
|
Source: Knight Frank Research / Land Registry
More information about Leicester city
The victory for Leicester city is just the most recent publicity for the city, which also saw the burial in Leicester Cathedral of King Richard III, the fallen King of the War of the Roses from the 15th Century – whose remains were found under a car park in the city in 2012.
For further information, please contact:
Nicholas Holt, Head of Research for Asia Pacific
nicholas.holt@asia.knightfrank.com +65 6429 3595 @nholtKF
Rachel Loke, Head of Asia Pacific Public Relations & Communications
rachel.loke@asia.knightfrank.com +65 6429 3587 @knightfrank
Lixia Liew, Manager, Marketing & Communications
lixia.liew@sg.knightfrank.com +65 6228 7358