Last month, Mayfair knocked Knightsbridge off the top spot as the most expensive place to buy in London for the first time in 10 years.
Local agent Wetherells, which commissioned the report from Dataloft, puts this dethroning down to a lack of new homes being built in Knightsbridge, whereas that certainly isnt the case in Mayfair.
The area has undergone an enormous change in the last decade. Though its the most coveted spot on the traditional Monopoly board, it hasnt always been in fashion.
There are somewhere in the region of 250 apartments under development delivering over the next five to seven years
“Its status as a highly coveted London address can be traced back as early as the mid-1600s when it became a neighbourhood favoured by English aristocracy who, after the Great Fire of London, fled the City and headed west,” says Frances Clacy from estate agent Savills.
It clung on until the 1950s, but was usurped by its hipper neighbour Chelsea. Meanwhile, the hedge funds moved in, converting once elegant homes into offices and demanding places to eat and shop during working hours. “Mount Street now rivals Bond Street and every Mayfair street has at least one restaurant that requires reservations weeks in advance,” notes buying agent Nathalie Hirst.
Before anyone knew what was happening, people were sticking around in Mayfair after work and residential developers began to see its potential again. Around the same time, the Duke of Westminsters Grosvenor Estate and Westminster City Council embarked on an era of regeneration and all the competition began to push up prices.
“There are somewhere in the region of 250 apartments under development delivering over the next five to seven years,” says Fred Scarlett of Mayfair-based developer Clivedale London. “The total net area of all these apartments would amass circa 600,000sqft – just over half the size of the Leadenhall Building.”
Dishes at Gymkhana
On top of this, Crossrail is coming to Bond Street this year, taking passengers to Heathrow in 27 minutes, pushing the average sale price to £4.2m, according to research by Hamptons International. It also records a healthy year-on-year increase of 6.9 per cent and notes that 67 per cent of sales last year were over £2m. And the good times are set to continue, with JLLs new Mayfair report predicting 6 per cent rental growth and 9 per cent price growth from 2018 to 2022.
So who is buying these shiny new apartments? Not who you think. Sure there are plenty of international buyers, but their tastes have changed recently according to Simon Barnes from H. Barnes & Co.
Read more: Could factory-made homes be the answer to the UK's housing crisis?
“Having previously preferred new builds, where Chinese and Asian investors would buy up to 10 units in one development, now they are focusing on trophy homes. Ive noticed that the last few big deals were transacted by wealthy Chinese buying large single residences for upwards of £10m.”
Mayfair-based Wetherells says 42 nationalities are represented in the area with 60 per cent born overseas. Yet, theres been a shift towards a younger demographic, with 45 per cent of its residents aged 25 to 44.
Alastair Mercer, director at Dexters Mayfair, says, “Thirty years ago, this was where foreign royalty, prime ministers and a large diplomatic community lived. Now its home to wealth managers, young business owners and ultra-wealthy overseas students.”
Afternoon tea at Fortnum & Masons
Area highlights
If youre not convinced yet that Mayfair is the ultimate London address, perhaps you will be after a visit to the Handel & Hendrix Museum. This spot behind Claridges was home to two musicians, separated by a wall and about 200 years, namely Baroque composer George Handel and rock legend Jimi Hendrix. Once youve filled your ears, feast your eyes on the collection at the Royal Academy of Arts, Britains oldest art school and artistic patron for 250 years. Its also opposite Fortnum and Masons, the Queens grocer and purveyor of Londons best afternoon tea (in our opinion). Or go for a shop in the Burlington Arcade, a real local gem, thats been recently restored and sold this week to billionaire New York investors the Reuben brothers for £300m. For a bite to eat, there are almost too many places to choose from as its the most Michelin-starred area in London. Were a particular fan of its upmarket Indian restaurants, especially Gymkhana and Jamavar.
Area guide
House prices Source: Zoopla
DETACHED
£7.571m
SEMI
£5.122m
TERRACED
£3.145m
FLATS
£2.538m
Transport Source: TfL
Time to Canary Wharf: 15 mins
Time to Liverpool Street: 12 mins
Nearest train station: Bond Street
Best roads Source: Hamptons International
Most Expensive: Grosvenor Sq: £6,303,900
Best Value: Hertford St: £1,367,270
