RedBook unveils ‘industry-first’ benchmarking tool for clients and advisors, shedding light on design and construction’s ‘smoke and mirrors’.
Goldman Sachs’ London HQ played host this month to the unveiling of a groundbreaking benchmarking resource by project directors RedBook. Attendees included top-tier brokers, developers, architects, and interior designers from the prime and super-prime property sectors.
RedBook’s new index, the first of its kind, draws insights from 1,750 live luxury property projects with an average value of £5.7 million, totalling over £10 billion. By analysing more than 100,000 data points, the tool offers unparalleled transparency into costs, timelines, planning, and design trends in high-end projects. It also allows design professionals to benchmark their fees, addressing long-standing challenges in the sector.
Key findings include:
- Significant variances in raw build costs between urban and rural luxury projects.
- Lengthened project timelines, driven by growing complexity and legislative changes.
- A debunking of the £1,000 per square foot myth, as this figure now only achieves mid-range specifications.
- Clear disparities in professional fees across various disciplines.
The research also highlights that British clients accounted for nearly 30% of prime and super-prime projects in the UK over the past year, with West European clients representing 21% of the international market.
Headline statistics from the index reveal:
- A 39.7% rise in raw build costs since 2019.
- 57% of firms reporting longer project timelines in the last year.
- 72% of projects delayed due to planning issues.
- On average, £200 out of every £1,000 allocated is spent on professional fees for primary consultants.
In terms of popular amenities, home cinemas lead the list (20%), followed by wellness rooms and gyms (18%), smart home automation (15%), and home offices (10%).
RedBook’s index promises to be a game-changer, providing clients and advisors with much-needed clarity in a traditionally opaque industry.
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