£5.4-BILLION-OF-NEW-LUXURY-HOUSING-DEVELOPMENT-TRANSFORMING-MAYFAIR-INTO-LONDON’S-TOP-ADDRESS

£5.4 BILLION OF NEW LUXURY HOUSING DEVELOPMENT TRANSFORMING MAYFAIR INTO LONDON’S TOP ADDRESS

18.12.17

An impressive 501 ultra-prime homes will transform Mayfair into London’s top address, overtaking rival Knightsbridge as the crème de la crème of the capital.

According to recent figures from a new report - commissioned by Wetherell Estate Agents - some £5.4 billion (GDV) is being invested into the highest quality homes in this part of London. The new homes are expected to sell for between £8.1 million and £14.85 million to high-net-worth purchasers from around the world.

The report, entitled ‘The Crafting of a New Mayfair’, also highlights how the funding environment for ultra-prime residential has been transformed by a shift from bank to private funding. Other factors include the lack of craftsmen qualified to work to the standards required, the fact that the super-rich seek healthier, less complex, lifestyles and how Mayfair’s new homes sales have become polarised between ‘off market’ and completed stock.

The £5.4 billion residential development renaissance is being delivered by 12 developers: Almacantar, British Land, Brockton Capital, Caudwell Properties, Clivedale, Fenton Whelan, Finchatton, K10 Group, Lodha Group, Luxlo, Native Land and Rigby & Rigby.

There are three distinct types of luxury residential development being built in Mayfair. The first are niche projects of between 1-10 units, built by bespoke developers. Examples include developers Luxlo, K10 Group and Rigby & Rigby.

The second type, which form the majority of new developments being built, are luxury apartment schemes of between 20-40 units. Developers delivering these schemes include British Land, Caudwell Properties and Finchatton.

The third type are large projects of between 40-80 units, with developers building these landmark schemes including Almacantar, Lodha Group and Clivedale.

“Mayfair has been revitalised as a residential district,” says Peter Wetherell, Chief Executive of Wetherell. “This is a relatively recent trend, driven by demand from super-rich buyers, by a shift in capital values away from offices and towards homes, and by the ending of temporary office planning consents granted during World War II.

“This new report shows that a new breed of property developer - we call them ‘craftsmen developers’ - has emerged to meet the demand for luxury residential property. All are more interested in quality than in quantity, because - and they are clear about this - you can’t sell to the super-rich, you can only offer them the very best of whatever it is they are looking for.”

Due to this wave of development over the next five years, the number of addresses in Mayfair will increase by over 10% and residential occupancy could increase by 25%.  80 units have has recently been completed, with the remaining projects being delivered during the next five years in two phases, the first over 2018-2019 – including 20 Grosvenor Square - and the remainder between 2020-2022 – including One Grosvenor Square, Hanover Bond and Audley Square.

But despite new luxury product entering the Mayfair residential market, availability of ‘turn-key’ dressed ultra-prime property remains low. Most of the recently built luxury stock is already sold as a result of either good forward sales or pent up demand once dressed supply has become available.

In addition, the phased nature of supply delivery over the next five years, means that stock continues to come onto the market piecemeal, rather than all at once, which for off-plan deals has helped to drive forward-sales.

“The delivery of these new homes over the next five years represents the biggest transformation in Mayfair in nearly a century,” adds Wetherell. “Some 1.3 million square feet of residential space will be created which will make Mayfair London’s No.1 residential address, taking the crown back from Knightsbridge and cementing Mayfair as one of the world’s premier luxury destinations to live, work and enjoy leisure.

Image credited to Goddard Littlefair

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