Indian investors drive the market up

NW8-based boutique agency Rescorp Residential has netted a £5,000 psf sale in Mayfair W1, and predicts that Mayfair prices will breach £6,000 psf by the end of the year as Indian investors move in.

In addition to the £5k four-bed, 4,000 sq ft prime Mayfair apartment, the agency ambitiously claims to have a listing on Davies Street coming on shortly "which will be selling for the record price of £6,100 psf," as Mayfair prices look set to eclipse Knightsbridge's 2014 high of £5,800 psf within the next few months.

A flat on Mount Street first broke the £5k barrier last year, while British Land's Clarges Mayfair scheme has done so repeatedly, with a penthouse unit going for "materially above" the benchmark figure. Knight Frank predicted that units in the current Mayfair development pipeline - which includes flagships all around Grosvenor Square and the In & Out Club - would hit £6,500 - £7,000, but didn't put a date on it; Wetherell's Peter Wetherell's claimed similar things.

Both of Rescorp's properties are indicative of a burgeoning Indian trend in Mayfair, says the agency, which claims to have seen a 50% increase in the number of Indian clients investing in London property - mostly in Mayfair, Marylebone or St Johns Wood - in the last quarter. Where 70% of Indian buyers were acquiring for personal use just a year ago, 57% are now apparently looking for investment deals.

Vic Chhabria, Managing Director at Rescorp Residential: "There is an array of new developments currently under construction in Mayfair, which is contributing to the rise in per square foot values. Six months ago, prices in Mayfair averaged at £3,000 psf, but this is beginning to change as these developments set a new standard of living in the area. We have just sold a 4,000 sq ft four bedroom apartment on South Audley Street to a client of Rescorp Residential and of Indian descent for £5,000 psf, the second sale in the last six months to reach these figures.

"Indian buyers in particular are becoming one of the key nationalities to purchase a property in Mayfair, overtaking Russian, Chinese and the Middle East investors. Mayfair offers a lifestyle that is particularly appealing to wealthy Indian buyers who use their London property as a holiday home, which is usually visited by different family members throughout the year.

"Mayfair is nestled in the heart of central London and is close to some of the best shopping districts such as Bond Street and Selfridges. There is a huge choice of fantastic restaurants and private members clubs in the area, which is where all 'Indo-Mayfairians' spend their time when they are in London and this is why the area is such a draw.

"The new developments under construction in Mayfair are setting a benchmark for quality, design and luxury and with continued demand and a shortage of stock, we expect that values will continue to rise. By the end of the year, property in Mayfair will overtake the record price for the penthouse at One Hyde Park, which famously sold for £6,000 per sq. ft. in 2010.

"This will be seen at Davies Street in Mayfair, where one of our clients is extensively refurbishing a 4,000 sq ft, apartment which, when complete will be a stunning double fronted luxurious space worth £25m - £6,100 psf."

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