Two of London’s poshest areas, Mayfair and St. James’s, could reign supreme in the battle for the city’s swankiest address, as residential development returns to the neighborhoods.
For several years, the areas—largely commercial, retail and hotel destinations—have been dormant in terms of residential development, according to Thursday’s report from property consultants JLL.
But construction is rising at a faster rate than it has in years.
There were 222 private units under construction in this year’s first quarter, a 39.6% increase from 2017’s last quarter and a 98% increase from 2015’s last quarter, according to the report.
Despite being renowned global residential markets, a lack of development in the past decade has starved potential purchasers in the area of choice and opportunity, said Peter Preedy, director at JLL, in the report.
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“Excitingly, this is now changing and changing fast. More importantly, Mayfair and St. James’s are set to wrestle back the accolade as London’s premier residential address from Knightsbridge,” Mr. Preedy said. “The volume of development, the prime locations and the exemplary specification of the schemes to be delivered will trigger this change.”
The two areas began turning from residential in the early 20th century and continued after World War II as many townhouses were converted into offices and international embassies.
Sales in Mayfair and St. James’s can command some of London highest prices, however the residential sales market in the areas have not been immune from Prime Central London’s downturn. On average, pricing in the two neighborhoods has dropped to £3,350 (US$4,554) per square foot during the first quarter of this year from £3,550 (US$4,825) per square foot at the end of 2014.
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