Bel Air: One of LA’s Hottest Neighborhoods

Bel Air

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.

Bel Air

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
  • Westlake
  • El Segundo
  • Inglewood

© 2019 The Raskin Group. 2115 Main Street Santa Monica CA 90405 (310) 867-0173

 

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale or withdrawal without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.

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