The Mayfair 2024 Residential Market Report by Wetherell shows that 70% of properties sold in Mayfair last year fetched between £2,000 and £10,000 per square foot. This is a huge leap from the 24% average for similar price brackets across prime central London.

Imagine stepping into a reception room of a property in Grosvenor Square that was snapped up for a cool £16.1 million. This is the reality of Mayfair’s real estate, where the average sales price over the past six years stands at an astonishing £20.35 million. This outstrips other luxurious London neighborhoods like Knightsbridge, Kensington, and Chelsea by a significant margin.

2023 saw a jaw-dropping transaction in Mayfair, with a property going for £138 million, setting a new benchmark for the area’s property market.

What’s Driving Mayfair’s Market?

Peter Wetherell, a top property agent and the brains behind Wetherell, points to a trio of factors: the availability of properties, the mindset of the sellers, and pricing strategies. Mayfair’s market is unique, fueled by the desires and demands of the world’s wealthiest individuals who are not in a rush to buy or sell. This results in transactions that only happen when the price is just right.

But there’s a twist in the tale. The next couple of years are expected to see an intense competition for properties in Mayfair due to a scarcity of available stock. With only three new luxury residential projects on the horizon – 1 Mayfair, One Carrington, and Three Kings Yard – offering a mere 65 residences, the squeeze is on.

Adding to the pressure are new planning restrictions set by Westminster council, capping the size of new-builds and putting a stop to the merging of units to create larger homes. This means buyers can’t simply buy adjacent properties and combine them into one mega residence.

The Future Looks Bright (And Expensive)

For the past seven years, Mayfair has enjoyed a glut of ultra-prime new homes, attracting billionaires and millionaires from across the globe. But those days are dwindling as the stock sells out and no new developments are in sight to replenish the supply. The upcoming Caudwell luxury development, known as 1 Mayfair, is now the centerpiece of the new homes market in the area.

Wetherell forecasts that the pricing for these ultra-luxurious new properties could soar above £12,000 per square foot in the coming years, potentially making Mayfair the most valuable real estate spot globally. The current record stands at £10,000 per square foot at No.1 Grosvenor Square, but it seems even this eye-watering figure could soon be surpassed.

A Word of Wisdom

For those dreaming of owning a slice of Mayfair, the message is clear: act now or miss out. In Wetherell’s words, “buy now whilst stocks last.” The luxury market in Mayfair is akin to hailing a taxi – if you miss this one, there might not be another coming around the corner. So, for the affluent looking to invest in a large, luxury new home, Mayfair beckons with open arms – but it’s a rare opportunity that won’t wait for long.