MAYFAIR OVERTAKES KNIGHTSBRIDGE AS LONDON’S PROPERTY HOTSPOT

Knightsbridge is no longer London’s top address due to a lack of new homes provision, outdated stock and constrained supply.

The famous London district has been overtaken by Mayfair as the prime property spot – according to research of the capital’s ultra-prime market from Dataloft, commissioned by Wetherell. For the first time in 10 years, since One Hyde Park was launched in 2007, Mayfair apartment prices have opened up a wide value margin above those of Knightsbridge.

For 2017, Mayfair apartment prices averaged £2,378 per square foot, 6% above Knightsbridge, which averaged £2,242 per square foot. Almost 75% of Mayfair sales in 2017 achieved £2,000 per square foot or higher, with the underperformers explained very short leases.

In 2015 Knightsbridge was £2,436 per square foot, compared to £2,398 per square foot for Mayfair, a lag of -2%, while in 2012, Mayfair values were -11% below Knightsbridge. The new research also shows Mayfair starting to overtake Knightsbridge on price indicators for both district’s most expensive stock.

Mayfair’s upward trend bucked the rest of the capital, which saw an overall fall in residential values last year. Across the rest of Prime Central London, average apartment prices in 2017 stood at £1,655 per square foot, down from £1,704 in 2016.

Knightsbridge has also had no new luxury mega-development in almost 10 years, while across Mayfair, 15 new residential developments are in the process of delivering 501 super-luxury residences over the next five years.

“Mayfair was historically London’s richest address. After 1945 many Mayfair homes were turned into offices, and planning priority was given to commercial premises,” explains Peter Wetherell, Chief Executive of Wetherell. “This, combined with the development of One Hyde Park and other luxury Knightsbridge apartments led to the last decade of Knightsbridge being the capital’s top address.”

“Five years ago we could see planning permissions and office-to-resi conversions halting the decline in Mayfair, and back in January 2014 we took the then bold step of forecast that Mayfair would eventually overtake Knightsbridge to become London’s most desirable address.”

“At the time agents and developers criticised our forecast and indeed one Knightsbridge developer said in 2014 that Mayfair prices would slow and fall over the coming years. I’m pleased that our Wetherell forecast have been proven with the test of time to be accurate.”