Mayfair’s property market has appeared to be immune to the Brexit turmoil.
But who are the winners and losers, and will the bubble burst?
The commercial property market in Mayfair and St James’s proved to be amazingly resilient last year.
The area saw a very strong take-up of office space in 2018, says Hunter Booth, co-head of West End Offices, Central London and International at Savills.
Commercial lettings totalled around 720,000 square feet of office space.
This figure is well above the ten year average, he said.
The presence of the financial sector in the area is at it strongest for a decade. It accounts for around 65% of all deals.
“Whilst no business is immune to Brexit, the strong presence of financial companies in Mayfair and St James’s suggests these businesses are continuing to move forward in the face of economic uncertainty and grow their businesses,” he said.
However, this could change in 2019, as new supply of office space dwindles.
There is a “terrifyingly low” amount of new office space completing in Mayfair and St James’s in the coming years, according to Booth.
On the residential side, there is no doubt the area is experiencing a development boom.
More than a dozen new schemes have been delivered or are in the process of delivering. This amounts to some 500 new units in the area.
“The new build residential developments coming through represent more than 10 per cent of the addresses of Mayfair,” says Peter Wetherell, of Wetherell Estate Agents, based in Mount Street.
“The area has not seen this type of development activity for 100 years,” he said.
These are luxury developments, the sort expected of an area like Mayfair, he said.
“The new build developments are offering buyers a unique opportunity to purchase a property, the like of which there has never been seen in Mayfair before,” he added.
But beyond 2021, the number of residential schemes in the pipeline is not so strong, he warned.
Simon Burgoyne, partner and head of the Mayfair and St James’s office at Knight Frank, predicts positive residential sales figures will continue this year.
He said: “Mayfair has improved significantly as a residential location in the last decade. It has regained its number one spot as a luxury location in prime central London.”
In lettings, the Harrods Estates have seen a marked rise in central London over the past year.
Also, more of the group’s current tenants are choosing to renew tenancies.
There have also been 20% more applicant registrations this year, according to Sarah McIntyre, lettings director at Harrods Estates.
Read the full story by Hardeep Sandher in the Mayfair Times here.
Picture: 13 South Audley Street, Harrods Estates.