Property: The lasting allure of historic conversions in luxury real estate

Ruth Bloomfield explores renowned buildings that have been renovated and rejuvenated for the modern superprime markets.

Homes in landmark buildings hold a unique appeal for superprime buyers, offering an alluring mix of authentic historic patina plus all the modern luxuries you would find in a brand-new building.

Buyers across Europe and North America have proved willing to pay significant premiums for this combination of iconic architecture, back-story and superlative interior design.

In some cases, the availability of this kind of property has even helped to transform entire real-estate markets. In Lisbon, the capital of Portugal, the intense redevelopment of run-down but beautiful city centre buildings has contributed to dramatic recent price growth. According to estate agent Engel & Völkers, average sale prices jumped from €2,682 (£2,250) per square metre in 2012 to €4,758 by last year.

Frederico Mendoça, partner at Cluttons Portugal, says mature international buyers, mainly from northern Europe, tend to be charmed by this kind of home.

“Traditionally a good conversion of a historic building can be 20 per cent more expensive than a new building,” says Mendoça. “Typically, these buildings are located in prime areas, so we can say that there is a bonus you have to pay when buying a refurbished unit compared to a new one.”

A proviso is that while buyers might be seduced by original tiles and frescoes, they are also focused on mod cons. “They want everything,” Mendoça says. “Parking space for an antique car, noble finishings on the bathrooms and modern and sophisticated kitchens.”

Alice Watson-Smith, managing director of Fine & Country estate agents in the French Riviera, agrees that beautifully finished historic conversions are first among property equals. “Buyers are often drawn in by the appeal that comes with the associated architecture, including high ceilings, spacious rooms, ornate mouldings and, of course, the lovely façades of the homes themselves,” she explains.

Again, it is overseas buyers – from Europe, North America and the Middle East in particular – who covet France’s historic homes, says Watson-Smith. And since few have the appetite to take on a fixer-upper, ready-made renovations occupy a property sweet spot.

London, of course, has long been a prime spot for restoration projects. One of the most eagerly awaited superprime developments of recent years was Raffles London at The OWO.

The Old War Office was a landmark Edwardian Government building where prime minister Winston Churchill based himself while leading Britain through the Second World War.

An eight-year, £1.4 billion renovation of the splendid baroque building was completed in 2023 and has transformed the space into 85 private residences. More than half of the homes have been sold despite stiff prices (starting at £4 million for a studio).

Amenities include all the usual suspects – gym, swimming pool, boardroom – plus a private cinema, games room and Guerlain spa. There are also nine restaurants and three bars.

The Balearic Islands are another hotspot for high-grade historic renovations. Terence Panton, managing partner at Palma’s Engel & Völkers estate agents, says that many buyers make a beeline for the city’s characterful Old Town when looking for a property, whether a family home or a holiday apartment.

“They want to buy something which retains the essential historic elements of a landmark building and that has been stylishly converted to incorporate contemporary design,” says Panton.

Smartly renovated historic homes can achieve prices of €10,000 to €15,000 per square metre, and Panton feels that limited supply in this small city should guarantee a decent return when buyers come to sell.

On the other side of the Atlantic, Rory McMullen, head of the North America desk at Savills’ private office, says well-designed conversions have the distinction that many buyers prefer over “cookie cutter” new builds.

Of course, not all conversions are equal. Some may have awkward layouts or lack spectacular views. “No one wants a conversion if it compromises on anything a new build will offer,” he explains.

The best New York conversions, like The Woolworth Building, 10 Madison Square West, and 720 West End Avenue all offer their residents concierge and security services, gyms and swimming pools, plus outdoor terraces and lounge areas. “Buyers will not compromise on quality for charm alone, but add some history and authenticity to an exceptional residence and you have pure gold,” says McMullen.

First published in the May 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.