Los Angeles, including many communities on the Westside like Bel Air, have had booming development for several years due to immense investment in the area. According to recent data, investors still seek out opportunities in the area.
What Does Development Do For the Westside?
By analyzing current data, we can learn which neighborhoods have the most development growth. As it turns out, communities with higher development also have higher property value growth.
Historically, Downtown LA and Beverly Hills are known for investment development. Although these two areas of Los Angeles still attract attention, growth has plateaued. However, growth in other areas has increased.
The reasons behind the increases are as varied as the neighborhoods that receive the attention. For instance, one area increased growth due to the availability of industrial space, while others grew due to multifamily complexes, office space for corporate relocations, and a growing entertainment district. For Bel Air, growth is due to ultraluxury homes.
When you usually think of spec homes, you think of a home that is moderately priced and appeals to a wide variety of potential homeowners. That is not the case in Bel Air. Instead, investors create lavish spec homes with prices to match. It is not unusual for a Bel Air home to sell for eight and nine figures, making it a very hot market.
Let’s take a look at the numbers:
- 2011 – total assessed property value = $6.7 billion
- Between 2011 and 2017 – property values grew 6.8% per year
- Between 2016 to 2017 – property values grew 11%
- Current total assessed property value = $9.9 billion
Homes in Bel Air
There are many ultra-plush homes with matching price tags. One of the latest is a mansion known around town as “The One.” Developer Nile Niami is creating the largest spec home ever to be sold. This palatial mansion includes:
- 100,000 square feet
- 20 bedrooms
- Movie theater with seating for 40
- Bowling alley
- Three infinity pools
- One infinity moat
- A room surrounded by jellyfish tanks, including on the ceiling
However, “The One” is not the only opulent spec mansion that’s been on the market in Bel Air. Others include:
- Developer Dr. Raj Kanodia – 34,000 square feet – $180 million
- Developer Bruce Makowsky – 12 bedrooms, 21 bathrooms, five bars, and two champagne rooms – $188 million
- Elite Investment Management – 19,000 square feet – $88 million
- Developer Nile Niami – $65 million
- Le Belvedere – $56 million
- Modernist compound bought by Hideki Tomita – $85 million
- Mountain of Beverly Hills – plot of land – $1 billion
- Jerrold Perenchio – 10-acre estate – $350 million
The current record for most expensive home sold in the United States is $137 million set in 2014. When sold, several Bel Air homes will beat this record.
Other high ranking LA neighborhoods include:
- City of Industry
- El Segundo