The wealthy neighbourhood of Mayfair is the number one residential spot in prime central London, having reclaimed the crown from Knightsbridge in 2016. It is often mistaken that the affluent residents of the area do not put any money back into the local economy. However, a new report from premier Mayfair estate agents Wetherell, has revealed that this misconception is entirely untrue and these residents contribute to the leisure, employment, and shopping divisions considerably.
A respectable 2,000 millionaires call Mayfair home, made up of 20 billionaires and 200 nine-figure salary earners. The ultra-wealthy residents are found to provide an ample £2.5 billion to the local and UK economy. The report provides data from property market experts Dataloft and EGI, and from Westminster City Council. Statistics show that luxury shopping, personal advisers, and hiring staff are among the categories with the highest expenditure from people in the prime neighbourhood. Those living in properties valued above £15 million are found to spend £4.5 million in London annually, with the top three spending categories on Interior and Artworks (£2,700,000), Clothes (£644,000), and Staff (£325,000).
PRIME CENTRAL LONDON’S NUMBER ONE ADDRESS
Currently, holding the crown as the superior neighbourhood in prime central London, Mayfair has been consistent with its ability to stand above the rest, yet it is also constantly adapting and evolving to the changing and growing resident profile. Over time, the community has attracted a younger crowd, with young, affluent, highly educated singles, couples, and small families currently residing in 43 percent of the households in Mayfair. The town continuously appeals to these young residents by providing a tremendous amount of flats created primarily to facilitate the requirements of their lifestyles.
The typical resident profile has not only evolved with age, but it has also developed into a welcome and necessary multi-cultural neighbourhood, with over 42 nationalities living in the area. 60 percent of the people residing in Mayfair were born abroad, and as the global economy changes and fortunes change hands, this diversity is likely to continue changing amongst the residents. America is currently home to the highest number of billionaires, according to the Forbes Rich List, with 540. China and Germany are next in line with 251 and 120, respectively. Russian-speaking billionaires have fallen in numbers of late, and the billionaires located in the Middle East are fewer recently due to the decline in oil prices.
EXPANDING HOUSE PRICES & SALES
For the longest time, the highest valued postcode in Mayfair has been W1K, and this address is still the current holder of this title. However, the neighbourhood has several exciting developments under construction and a further 21 luxury property developments in the pipeline for the next five years, which aims to expand the high-value real estate market and sales into the W1S and W1J areas.
Prime central London has remained stable in spite of the Global Financial Crisis, with property prices 45 percent higher today than before the crisis hit in 2007. The last decade has seen an 188 percent increase in house prices in Mayfair, which is a substantial improvement over the wider prime central London property market. The Mayfair real estate market has also outperformed equity markets as an investment option, making it a secure and promising expense for buyers. New property developments in the area can drive 100 percent premiums over the prevailing market rate, by providing the latest facilities and unique designs to meet the demand of the ultimate luxury lifestyle.
Properties entering the market are currently commanding prices over £1 million for flats and £4.8 million for houses. These prices represent a 42 percent house price growth, which is fractionally lower than 45 percent of 2015, but much greater than the 30 percent growth rate over the last ten years. It is also much higher the house price growth rates across the rest of prime central London.
Current property holdings in Mayfair amount to 4,348 homes, consisting of 870 social residences, 1,305 private owned houses, and 2,173 privately rented properties each home to wealthy tenants, paying an average £1,387 a week. The majority of the properties are valued between £2 million and £10 million, with 45 percent valued over £10 million and the remaining 5 percent worth less than £1 million.
It is estimated that the few remaining properties valued under £1 million will eventually cease to exist over the next few years as higher value properties come on to the market, and new developments pull the average house price up in the area.