Over the last several years, London’s coveted Mayfair neighbourhood has topped the list of most desired places to live in the area.
With its luxury feel and consistent influx of new businesses and prestigious residents, Mayfair is sought after by many.
However, potential homebuyers around London and throughout the UK have been slow to jump on the real estate investment bandwagon in recent months. Concerns over instability in the markets, news like Brexit, and a general slowdown in the housing market has some homebuyers on the fence about investing in luxury properties. Although the prices of Mayfair properties are not well-suited for every prospective buyer, investing in real estate may make sense for those who are looking for a great deal now.
One of the driving forces behind the potential return on investment for properties in Mayfair is the historically high amount of available housing stock. According to a leading real estate expert, the number of houses for sale in Mayfair is up 50 per cent over historical figures.
This increased amount of available properties makes it easier for buyers to find what they are looking for, and at a price point that suits their needs. Additionally, demand in the second-hand market is rising, particularly in the lower end of Mayfair property sale prices. Currently, 75 per cent of the market available to interested buyers is priced up to £5 million, with availability at 59 per cent.
An increased quantity of high-quality homes allows buyers to take the reigns in home-buying transactions throughout Mayfair. Sellers recognise that the competition among other property owners looking to list their home is steep, regardless of what may be taking place in other areas of London. Because of the current state of the Mayfair market, buyers have the upper hand when it comes to investing in their next home or rental property.
Homes in Mayfair are in prime position to sell to the right buyer thanks to underpriced stock. Of the available properties in the area, 50 per cent have recently reduced prices. Some experts suggest that as the market continues to fluctuate and broad economic issues continue to make headlines, price reductions may remain the norm even in higher-end areas like Mayfair. Combining the increased number of underpriced properties with a higher number of available homes creates a stronger buyer’s market in the neighbourhood.
Finally, Mayfair is bustling with regeneration and development, specifically designed to entice current homeowners to stay and new residents to join the ranks of the luxury neighbourhood. The natural open-air spaces and greenery woven throughout the streets of Mayfair are enough of a draw for some.
However, more luxury shops, entertainment spots, and dining experiences are now making their way to the region. Developers are also focused on revitalising older buildings in the area, turning multi-level retail and residential locations into havens for the right buyers.
The influx of developers and new businesses in Mayfair makes it a great time to invest in property before prices begin to reflect these changes by going up.
Overall, prospective buyers who are drawn to the area of Mayfair for one reason or another can likely find a property that suits their needs and wants, all at a price point that is lower than they may have anticipated.
New developments, a refreshed business line-up with dining and entertainment options, and increased stock all call for a closer look at London’s most desired neighbourhood. Before investing in any real estate, however, buyers need to take a close look at their financials to ensure a property purchase in a luxury area like Mayfair is appropriate for both the short- and long-term.