Investment in ultra-prime residential property in London in locations such as Mayfair is a “win-win” play, says Wetherell in a new report entitled “Don’t Wait to Buy in Mayfair”, produced by the Mayfair estate agent, with analysis by Dataloft, the market intelligence group.
Wetherell highlights that Brexit uncertainties have already weakened sterling, which has helped to generate an influx of Dollar-based buyers who are effectively getting a price discount on buying property in Central London. In addition, regardless of whether Brexit is “hard” or “soft” Wetherell forecasts that when the UK leaves the EU on 29 March 2019, the government may be forced to lower corporate and private taxes and reduce the size of state spending.
The new report highlights that a wave of new super-luxury residential developments being built alongside Mayfair’s world class shopping and dining amenities. Wetherell forecasts that these new residential developments will help to place Mayfair at the peak of the post-Brexit London property market.
According to the new report there are 11 major developments currently under construction in Mayfair which will provide 400 new homes (a 10 per cent increase in Mayfair’s housing stock). Wetherell predicts that the new developments will be the final component to set Mayfair ahead of other ultra-prime London locations, making Mayfair not only the best address in London for shopping, restaurants and hotels but also the best location for luxury residential addresses.
Peter Wetherell, Founder and Chief Executive of Wetherell, comments: “Mayfair now offers residents the very best that central London has to offer, with excellent shopping, restaurants, art galleries and museums, and London’s best commercial spaces. The missing piece of the jigsaw puzzle, new residential development, is now under construction and will set Mayfair above all other ultra-prime locations.
“Having already been involved in 69 per cent of all successful marketing and sales of Mayfair property sold between 2012 to 2016, Wetherell are ideally placed to predict future trends in the changing local marketplace. Uncertainty and loss of market share due to Brexit will place whatever government is in power under huge pressure to cut Corporation tax, cut income tax and slash Stamp Duty. All these measures will be needed to keep London competitive, so bold investors now could reap future rewards.”
Over the past ten years Mayfair apartment sales have outperformed the rest of Prime Central London. Between 2007 and 2016 the average value of Mayfair apartments has risen by 85 per cent, outperforming the rest of Prime Central London by 20 per cent (which has only seen a 65 per cent increase).
The average price per square foot of residential property in Mayfair has also outperformed the rest of prime central London with the Mayfair average reaching GBP2,350 in 2016 compared to the rest of prime central London’s 2016 average of GBP1,750.
Wetherell notes that with the new pipeline of luxury developments, Mayfair will be catering to the demands of global ultra-high-net worth buyers who seek new-build apartments and houses with hotel style amenities such as gymnasiums, 24 hour concierge services and gated security.
Mayfair developments such as 77 Mayfair, Clarges Mayfair and Mayfair Row, have set a new benchmark for London luxury. Buyers who were previously looking in Chelsea and Knightsbridge are now offered a third, more competitive and favourable option in Mayfair. Wetherell predict that with the new developments, the average price per square foot in Mayfair could double over the next five years.
Wetherell concludes: “Due to the rejuvenation of the local area, Mayfair as a brand is now synonymous with luxury. The quality of facilities and appeal it now offers international buyers sets Mayfair above all other competing central London neighbourhoods.”