Mayfair becomes a Resort Village for Young Super Rich
Mayfair has become a resort-village for affluent young 20 and 30-something residents from around the world, a huge shift in demographics from the post-War period when 50 to 70-somethings dominated the housing market, a new report by agent Wetherell, in association with Dataloft, has found.
The Wetherell report highlights that this re-population with money-ed 20-somethings has resulted in a massive makeover and character change in Mayfair’s shops, restaurants, bars and homes; as staid and stuffy has been replaced by hip and cool.
Using local market intelligence, its own data and figures from the Census, Lonres and Land Registry, Wetherell, with data analysis by Dataloft, has produced a new report entitled: Who Lives in Mayfair? – which reviews the huge demographic shifts that have taken place in Mayfair and the impact this has had on the local economy and housing market.
The Who Lives in Mayfair? report reveals that almost 60% of the 5,118 residents in Mayfair are now aged below 44; with almost 45% of residents aged between 25-44. Mayfair with its 279 acres and 4,348 residential properties is now dominated by wealthy mid-20 to mid-30 something households.
Wetherell reveal that Mayfair households are now typically young bachelors or bachelorettes (55% of private rented and 52% of owner occupier households consist of single people), who want to live in a fun and lively resort-village with easy access to fashionable shopping, restaurants, bars and clubs.
Peter Wetherell, Chief Executive of Wetherell, says: “Mayfair has become a global-oasis for young people, and a “twin” of destinations like New York, Monaco, San Tropez and Miami, which are the other hubs where the world’s wealthy elite choose to relax and enjoy their leisure time.”
Wetherell highlight that an “entry level” flat in Mayfair now costs over £1 million whilst rents average £1,225 per week. Bankers; wealth managers, commodity brokers, young business owners; advertising directors and students from ultra-wealthy families are now typical Mayfair household profiles.
The Wetherell report says that modern Mayfair has also become highly cosmopolitan. Whereas post-War the largest group of overseas residents were American, there are now residents from over 42 nationalities, with over 60% of Mayfair’s residents now born overseas, up from 49% back in 2001.
Over the last 15 years the biggest rise has been residents born in Europe and the Middle East. Wetherell highlight that Mayfair now the “London address of choice” for wealthy residents from Qatar, Saudi Arabia, Kuwait, Abu Dhabi, France, Germany, Italy, India Nigeria and Russia.
Wetherell highlight that Mayfair’s overseas residents fall into two categories – the first are “staycation residents”, people who typically visit London two or three times a year and stay for anything from two to six weeks at a time. For this group their Mayfair property is a “holiday home” and they see the locality as a “village-resort where they can enjoy luxury restaurants, clubs and shopping.”
The second type of overseas resident are “resident Anglophiles”, overseas residents who choose to make London their main home. This latter category is growing, with now 40% of overseas residents recording that they have lived in London as their main home for over 10 years.
Luxury shopping and dining out are key leisure activities for Mayfair residents. Over two-thirds of Mayfair residents typically eat out 3-4 times per week and Middle East residents spend on average £1,900 per shop, US £550 per shop, Chinese £1,688 per shop and Nigerians £500 per shop.
As a result of these trends, the Mayfair economy has recovered strongly since the global recession. The latest New West End Company Report (2015) shows that annual food and beverage sales are up 9.1%; over 80 new shops opened in the Mayfair area in 2014 and annual retail sales are up 3.8%.
Wetherell highlight that the current demographic profile of Mayfair is an astonishing transformation from the post-War period. Between the 1950s and 1980s, Wetherell estimates that the average age range of owners in Mayfair was 55 to 75 years of age. Properties were often inherited rather than purchased. Up until the late 1980s Mayfair was where adults with grown up children lived, and grandparents. There were families, but younger households were not the norm.
As a reflection of this, Mayfair’s social scene was dominated by sleepy Gentleman’s Clubs, family restaurants and staid hotels whilst the fashionable “interior look” of Mayfair’s houses and apartments was classic English country house style, think Colefax & Fowler and Laura Ashley.
Peter Wetherell, Chief Executive of Wetherell, says that because of these demographic shifts, the “interior design look” in Mayfair has changed dramatically. “There are now a new generation of Mayfair homes with cool, contemporary interiors, bright colours and unusual furniture pieces. Instead of old masters, hunting scenes and watercolours, walls are adorned with contemporary artwork from places like Hoxton, or with “posh selfies” – framed photographs of the owners – or prints of celebrities and rock stars.“ he says.
Peter Wetherell, Chief Executive of Wetherell adds: “Some developers, landlords and investors who seek our advice on the Mayfair market gasp when I talk about the need for homes to have a young funky contemporary look. But there is a need to create cool pads which appeal to the new younger generation of buyers were are increasingly seeing. “
Download a copy of the Who Lives in Mayfair? Report here … or for a hard copy contact Wetherell on Tel 020 7529 5566