Mayfair to Become London’s Best Address
Mayfair to Overtake London’s Most Expensive Area
On 1 November 2012, The Times reported, citing real estate agent Hamptons International, that the value of properties in Mayfair could reach £15,000 per square foot by 2050. The central London district will not just retain its “super prime status”, but it will also become the capital’s top address, attracting long-term minded residential investors and developers, says Hamptons’ report assessing future values of new-build residential schemes in London.
The value which Hamptons predicts would represent an increase of more than 300 per cent over the next 38 years, which could result in Mayfair overtaking Knightsbridge as the most expensive area in London. Although all the recent records for the most expensive homes and residential schemes have been set in Knightsbridge, according to Hamptons, a healthy pipeline of supply in Mayfair meant it will outperform other prime areas for the foreseeable future. In fact, the value of homes in Mayfair has already started showing signs of an increase. On Wednesday, a penthouse on Park Lane was sold for £19.5 million, breaking the £4,000 per square foot barrier and achieving a 400 per cent appreciation since being sold by the same agent in 1996.
Head of Research at Hamptons International, Adam Challis, said: “Commercial-to-residential conversions and large-scale development opportunities such as the American Embassy [on Grosvenor Square] ensure that far from resting on its laurels, Mayfair will take its place as the traditional bastion of wealth.”
**Knightsbridge Won’t Drag Its Feet**
!m[Properties in Mayfair Could Hit £15,000 per sq ft by 2050 with Knightsbridge Not Far Behind ](/uploads/story/696/thumbs/pic1_inline.png)Despite the foreseen increase of Mayfair properties’ value, the current claimant to being the premier capital postcode, Knightsbridge, will not be far behind, says Hamptons’ report. For the last few years, the district has been attracting wealthy foreign investors looking to buy luxury properties in London. Recently, Knightsbridge has seen growing activity from Asian buyers, especially from China where concerns over the economic stability of their country has risen in the past few months. An impending leadership reshuffle at the top of the Communist Party could well also be a stimulus to a section of the wealthy elite shifting resources out of the country to perceived safe havens such as upmarket London property.
Nick Candy, chief executive of Candy & Candy, the development company behind Knightsbridge’s most expensive residential scheme, One Hyde Park, said the company had sold five flats in the past three months to Chinese, Thai, Taiwanese and Malaysian investors. Asian buyers now account for more than 30 per cent of the total £1.7 billion of One Hyde Park sales.
**Other Areas Also Emerging on the Monopoly Board**
While Hamptons’ report points to Mayfair as London’s best address to be, the real estate agent predicts the emergence of new top residential areas, particularly in East London, where values would also rise significantly. According to Hamptons’ head of residential development, Nick Vaughan, if the Monopoly board was to be designed today, it would include very different districts to the original designed in 1935. He said that areas such as Canning Town would make a debut. The East London district, where homes are currently £500 per square foot, was the capital’s most up-and-coming area and values there could reach about £1,310 per square foot by 2050, the equivalent price of a new apartment in central London’s Fitzrovia today.
Vaughan added that there are other fast growing residential locations, such as Elephant & Castle and Stratford, and while the original Monopoly board only included one neighbourhood south of the river Thames — Old Kent Road — one designed today would have to feature at least six areas.
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