Mayfair is one of the world’s most extraordinary property markets; a 285 acre rectangle of central London spanning between Oxford Street in the North, Regent’s Street to the East, with the A4 in the South and Park Lane to the West.
It is the Capital’s largest and most sought after district; packed with nearly 5,000 addresses and with a reputation for prices that continue to outperform most other comparable neighbourhoods, more specifically Eaton Square, Cadogan Square and the increasingly fashionable Grosvenor Square.
Nothing seems to dent the confidence of the Mayfair property market and, despite talk of a possible base rate rise later this year, there’s still an air of excitement and intensity regarding property sales in the area. The district’s Regency-era streets, many of which are still lined with properties designed by the era’s architect John Nash, are highly sought-after by international investors.
Assisting clients in the area this week, it was clear that the good weather had brought out the shoppers in their droves on to Old Bond Street and Regent Street, which were awash with overseas money particularly those spending yen, rouble and dollar.
The eagerness to spend in the area’s upmarket fashion boutiques and furniture shops mirrors the international appetite for local property. Prices for new, off-market or ‘confidential’ stock have been pushed up to prices that, earlier this year, people scoffed at when predicted by experts.
Some properties are for sale in the Mayfair region at £4,000 per sq ft, even heading to the £5,000 region, an incredible sum if you consider the fevered excitement of the Candy brothers’ One Hyde Park fetching £4,000 to £6,000 a couple of years ago. In today’s market in the area, £3,000 is not unusual, more the norm in fact.
Why is this the case when Mayfair is driven by the same forces that affect the rest of London and the South East? Simply, even though there are roughly 60 new developments in the pipeline, there still are not enough homes being built in the area to sate the demand. This is partly because the regions property stock has remained more commercial than residential historically – you are just as likely to find a hedge fund behind one of Mayfair’s smart doors as you are a residential home.
Some say the reason for the continued balance between residential and commercial property is that the big estates that own Mayfair, such as the Grosvenor Estate, prefer to keep the balance this way, alongside the town planners at the London Borough of Westminster sharing this opinion also.
Nevertheless, the controlling grip on the Mayfair market that these establishments seem to have retained may be jeopardised with the high profile developments on the market in Old Burlington Street and around Curzon Street. Perhaps these desirable property developments may help cool prices in the district. However, thus far, there has been little sign of this happening, particularly with some experts suggesting that prices could reach £10,000 per sq ft over the next decade.
Garrington are experienced in dealing with the diverse and competitive nature of the London property market in Prime Central London and highly competitive locations such as Mayfair. Contact us today to learn how we can assist you.