London’s Mayfair neighborhood beats Manhattan as the most expensive ultra-prime market in terms of price per square foot, according to a February report by Beauchamp Estates.
In its fourth "Ultra-Prime Barometer" report, the London-based luxury residential brokerage said the average per-square-foot price for Mayfair ultra-prime homes has reached £3,853 (US$4,812), while it is £3,575(US$4,464) for Manhattan.
More:London is Favorite Destination of Ultra Wealthy Home Buyers
However, the overall average asking price of ultra-prime homes in Manhattan stands at £21.5 million (US$26.9 million), while Mayfair averages £18.4 million (US$23 million).
The firm reviewed 500 ultra-prime properties in London, Manhattan, the French Riviera (or Côte d'Azur) in southeastern France, Tuscany in central Italy, Mykonos in Greece; and Tel Aviv and Herzliya in Israel.
The threshold for ultra-prime properties differs for each location. For example, Beauchamp Estates defines ultra-prime properties in Manhattan and Mayfair as those priced over US$15 million and £10 million, respectively.
| A Glance at Global Ultra-Prime Markets | |||
| Neighborhood/City, Country | Per-square-foot Price | Average Price | Threshold for Ultra-Prime |
| Mayfair/London, United Kingdom | £3,869 | £18.4M | £10M |
| Manhattan/New York, U.S.A. | £3,575 | £21.5M | $15M |
| French Riviera, France | £3,046 | £19.0M | €18M |
| Tuscany, Italy | £849 | £13.3M | €10-30M |
| Mykonos, Greece | £724 | £4.3M | €3M |
| Tel Aviv, Israel | £2,427 | £8.4M | $5M |
| Herzilya, Israel | £1,574 | £13.6M | $5M |
| Source: Beauchamp Estates |
Despite global political and economic uncertainties, demand for ultra-prime residential property remains solid, as the wealth of the ultra-high-net-worth individuals—the population worth at least $50 million—is expected to increase, according to the report.
Citing data from Wealth-X, a leading global wealth information provider, the report predicts that the number of ultra-high-net-worth individuals will exceed 318,000 by 2020 from the current 212,615, about a third of whom are Americans.
"Our view is that 2017 will not bring any dramatic swings in values, rather it will be a year in which buyers and sellers remain calm and measured," the report said.
However, each individual market is faced with different challenges. The exchange rate, Brexit and new Stamp Duty taxes largely influence Mayfair’s market, while Manhattan is still absorbing the "Trump Effect" and facing a slowdown in new luxury builds, according to the report.