A Closer Look At Mayfair’s Prime Economy
A Period of Transformation
In all of prime central London, Mayfair has always been one of the most enduring and prestigious neighbourhoods in which to live for the ultra-wealthy in London. Today, against the backdrop of a fast-changing global economy, society and political environment the neigbourhood is in the midst of an exciting transformation not witnessed since the 1920s.
Given all of this change and ongoing interest in this area of prime London, the estate agents, Wetherell, have recently published a report that takes a closer look at Mayfair’s prime property market. We’ve summarised some of the key highlights of the report that spotlight the transformations happening in this fabulous neighbourhood.
The Prime Property Market
Over the last ten years house price growth in Mayfair has been 188%, outstripping growth in other central areas of London over the same period. The price per square foot of Mayfair prime real estate now averages £2400 and the highest prices in 2016 were reaching close to £5,000 per square foot. The most expensive postcode in Mayfair remains W1K, Grosvenor Square. Wetherell’s declares that Grosvenor Square has accounted for half the best prime residential transactions in the market over the last 10 years. However, the influx of new developments happening in Mayfair W1S and W1J, it is expected that higher sales rates and prices will spread across the district.
The latest figures suggest the profile of Mayfair residents is changing, steadily becoming younger as 43% of Mayfair’s households are now considered to be classed in the ‘young, affluent and educated’ bracket used by Westminster Council to classify households.
Furthermore Wetherell’s report suggests more than 60% of Mayfair residents were born overseas, as trends in global wealth shift around the economy.
Expenditure Habits of the Ultra-Wealthy
For the ultra-wealthy looking for a new home, one of the most alluring aspects of Mayfair, is the fact that world-class couture and cuisine is to be found virtually on their doorstep.
Westminster council defines the homes within its jurisdiction as ‘prime’, when they have a recent transaction value over £5m. In Mayfair alone Westminster City Council estimate that owners of prime homes to contribute £2.3 billion per annum to the UK economy through household expenditure.
This household expenditure is broken down in Wetherell’s report and we have helpfully visualised the data as a pie chart, to see exactly what the outgoings of typical a super-prime household (with a value of over £15 million) in Mayfair look like.
Interior design by far accounts for the most significant portion of household expenditure but in total the data suggests that Mayfair’s millionaire residents each contribute £4.5 million to London’s economy for each 90 days they spend in London.
The full ‘Golden Decade’ report as published by Wetherell can be found here.