LREF 2016: Mayfair has historically been starved of of high quality development. However, the area is now experiencing a “golden period” of regeneration.
According to Knight Frank’s Tom Dailey, panellist at the London Real Estate Forum (LREF), there are currently 42 residential schemes with consent in Mayfair and St James, and 16 are under construction.
But fellow panellist Dukelease’s Richard Leslie said that he found “this period the most difficult I have encountered from a resi sales point of view”. Leslie said Dukelease was now giving “small discounts of 3-4%”, and he believed the market is now in “uncertain times”.
He said: “Hopefully the Brexit vote will be in favour of remaining in the EU and we will then see a big bounce in Q3 and Q4 2016.”
Pressures and threats to the Mayfair and St James market included more footloose occupiers, retention of talent and maintaining affordability, said Knight Frank’s Ian McCarter. He warned that the impending rating revaluation will be “one of the threats we have to face”, with regards to occupation costs.
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