The supply of luxury new homes for sale in Mayfair has hit a 10-year record low as rising construction costs and new planning restrictions start to bite.
But the dwindling supply has helped to trigger a boom in Mayfair’s luxury lettings and hotel sectors as wealthy international visitors to Mayfair choose to rent or stay in hotel suites during their stays.
The latest Mayfair 2025 Residential Market Report published by Wetherell analyses Mayfair sales and lettings data from 2023 and 2024, sourced from LonRes, the Land Registry and Wetherell local market intelligence.
This has been combined with Mayfair luxury hotel demand and room rates data from AND London to provide a comprehensive analysis of the ultra-prime accommodation sector in the district.
LUXURY HOMES
The report reveals that from 2015 the number of Mayfair new homes schemes rose with the result that between 2017 and 2023 developers built and sold over 500 new luxury homes in Mayfair generating sales worth £1.9 billion and increasing the amount of residential stock by 10%.
The significant supply resulted in new homes accounting for between 60% to 85% of all Mayfair home sales per annum during this period.
Wetherell highlight that buyers from India, the Middle East and Asia prefer to purchase newly built homes in Mayfair that offer lateral living space and benefit from hotel style concierge and lifestyle amenities such as a gym, swimming pool and spa,
New planning restrictions in the Westminster City Council’s Development Plan for the next 20 years now prohibit the size of units in a new Mayfair development to a maxiumum of 2,150 sqft (200 sqm).
These planning changes, combined with rising land, labour and construction material costs have generated a plunge during 2024 in the number of new homes being planned and built in Mayfair.
Wetherell highlight that over 2024 and 2025 there are currently only three new luxury Mayfair residential developments under construction – 1 Mayfair, One Carrington and Three Kings Mayfair – providing 65 newly built homes.
Added to this is the completed 60 Curzon Street offering 34 new apartments, meaning there are just 99 new or pipeline homes available.
Wetherell say that the significant reduction in new homes supply has helped to trigger a boom in Mayfair’s luxury lettings and hotel sectors as wealthy international visitors to Mayfair, unable to purchase new pieds-à-terre, have instead chosen to either rent Mayfair apartments or hotel suites during their stays in London.
LUXURY LETTINGS BOOM
As a result of these trends during 2024 the Mayfair lettings market boomed, achieving an average of £90 per sqft, compared to just £65 per sqft for the rest of Prime Central London.
Average weekly lettings values in Mayfair during 2024 far exceeded the rest of Prime Central London. Two bedroom Mayfair apartments let for £1,710 per week, compared to £1,107 for the rest of PCL, three bedroom flats let for £3,270 per week, compared to £1,978 for PCL and four bedroom flats let for £6,000 per week, compared to £3,025 for PLC.
The most expensive lettings achieved over the last 12 months have been in the newly built apartment buildings around Grosvenor Square such as 20 Grosvenor Square and One Grosvenor Square and the Clarges Mayfair apartment scheme overlooking Green Park.
Picture credit: Wetherell
Wetherell highlight that another impact of the lack of new homes supply has been on the luxury hotel market in Mayfair as international visitors have chosen to occupy hotel suites for their stays.
As a result, the hotel occupancy rate for London’s West End, centred on Mayfair, rose 8% between 2023 and 2024 to reach almost 80%, whilst the average revenue per available room hit £230, up 12.4% on 2023.
Wetherell says that the strongest occupancy demand has been in the luxury hotel sector and this has helped to trigger a development boom in new luxury hotels in Mayfair.
In 2024 the new Mandarin Oriental opened in Hanover Square, providing 50 guest rooms.
During 2025 the new St Regis London by Marriott will open on the site of the former Westbury Hotel in Conduit Street, with 196 rooms.
Picture credit: Wetherell
There will also be the opening of Cambridge House at 94 Piccadilly by Auberge, offering 102 rooms, and The Chancery Rosewood in Grosvenor Square by NWHM, having 146 rooms.
In 2027 the opening of the new Oberoi Hotel at 40-46 Brook Street by Grosvenor, EIH London Investments and The Oberoi Group will take place, providing 23 rooms.
Wetherell says that despite the lack of supply of newly built homes for sale, the Mayfair residential sales market performed strongly during 2024, a striking contrast to neighbouring addresses such as Belgravia and Knightsbridge which reported slow sales and falls in values.
Mayfair had 93 second-hand home sales during 2024 – a 10-year record for Mayfair.
Mayfair had 93 second-hand home sales during 2024 – a 10-year record for Mayfair. This can be compared to 82 second-hand home sales in 2023 and 81 sales in 2022.
On a 10-year average there are normally 75 sales per year in Mayfair. Of the 93 sales, almost 30% were for homes priced at over £5 million and 9% were for super-prime homes priced at over £10 million.
There were a series of sales valued at over £20 million, including two valued at over £50 million. During 2024 Mayfair had more £20 million plus sales than any other district in Central London.
More than half (55%) of the second-hand home sales in Mayfair during 2024 achieved values of over £2,000 per sqft, compared to just 24% for the rest of Prime Central London.
Picture credit: Wetherell
Brand new homes in Mayfair are typically achieving values of between £5,500 to £10,000 per sqft and over the next few years values for the finest homes will hit £12,000 per sqft.
Wetherell say that during 2024 40% of the buyers in Mayfair were domestic UK buyers, with 60% from overseas with the biggest buyer groups being American, Middle Eastern and Indian.
The small number of new developments in Mayfair have performed well. Three Kings Mayfair off Davies Street, offering eight apartments, is almost 65% sold out with the £8.995 million penthouse purchased by an American buyer with just three apartments now remaining for sale. The completed 60 Curzon Street is now 50% sold out at values averaging £5,800 per sqft, with the largest purchaser group being American buyers.
Picture credit: Wetherell
One Carrington on Carrington Street by Reuben Brothers, with 28 apartments scheduled for completion in late 2025, has had steady sales interest.
And 1 Mayfair by Caudwell, providing 24 principal residences, plus five further pieds-à-terre, scheduled for completion in Spring 2026, has built up a substantial “waiting list” of potential buyers prior to entering its sales phase later in 2025 with the unveiling of the development’s first dressed residence.
10-YEAR RECORD LOW
Peter Wetherell, Founder & Executive Chairman of Wetherell, says: “Planning restrictions and rising construction costs have resulted in the supply of luxury new homes for sale in Mayfair hitting a 10-year record low.
“This lack of supply has helped to trigger a boom in Mayfair’s luxury lettings and hotel sectors since wealthy international visitors to Mayfair, unable to purchase new pieds-à-terre, have chosen to either rent Mayfair newly built apartments or hotel suites during their stays.
“Over the next three years just 65 new luxury residences will be built and completed in Mayfair compared to 467 new luxury hotel rooms.
“During 2025 we are likely to see a further increase in lettings values and a rise in the average revenue per available room in Mayfair’s luxury hotel sector.
“We also forecast that the volume of Mayfair home sales will rise by 30%, the market driven by buyers from the Middle East, America and India, and values for the most sought after homes will rise by 1% to 2% in value whilst the rest of the stock will stay stable in value.”
