Mayfair’s prime residential market has become sharply polarised and is now at the bottom of its current cycle according to new research which points to a 10-year low in “sellable supply” against rising demand.
The latest Mayfair in Minutes 2026 survey from local agency Wetherell finds that transactions are increasingly concentrated at two ends of the market: brand-new or newly refurbished homes and unmodernised stock ripe for redevelopment.
Second-hand, “liveable” homes are being squeezed out. In 2025, just 69 second-hand properties sold in Mayfair, down from 96 in 2024, with almost 60% requiring price reductions. More than 10% of second-hand listings were withdrawn in the latter part of the year, pushing effective supply to its lowest level in a decade.
Values remain 21% below their 2014 peak.
Values remain 21% below their 2014 peak, with second-hand prices averaging £2,005 per sq ft in 2025 after a 3% annual fall. However, viewing levels since the start of 2026 are running at four times those seen at the start of last year.
The report forecasts price growth of between 1% and 2.5% over the next three years, arguing the market bottomed out in Q4 2025.
Demand is being driven by younger international buyers seeking turn-key properties, alongside investors targeting heavy refurbishment opportunities at around £2,000 per sq ft, compared with £6,000–£10,000 per sq ft for best-in-class stock.
SUPPLY-DEMAND SHIFT
Peter Wetherell, Executive Chairman of Wetherell, says: “The Mayfair property market hit the bottom of the current cycle in Q4 2025. With ‘sellable supply’ now at a 10-year low and sale viewings now four times higher than in 2025, the supply-demand equation has shifted and Wetherell expect residential prices in Mayfair to rise between 1% to 2.5% over the next three years.
“The Mayfair market has become highly polarised with most buyers purchasing brand new/newly refurbished homes and the remainder acquiring unmodernised stock for refurbishing and capital value uplift.”
And he adds: “The Mayfair sales market is currently dominated by wealthy buyers from just five countries – the United Arab Emirates, Saudi Arabia, America, India and the UK. Mayfair has now overtaken Knightsbridge as the most popular address for Middle East buyers purchasing homes in London, with four out of every five Middle Eastern clients only want to live in Mayfair.”
