Historic, charming and yet not quite on the average London property buyer’s radar, Shepherd Market could well turn out to be one of Mayfair’s hidden hotspots.
Located between Curzon and Piccadilly, this small area is home to pubs, boutiques, coffee shops and a smattering of apartments and houses. A new research report released by Pastor Real Estate has shown that this historic area is experiencing price growth that is nearly comparable to that of wider Mayfair, and that this expansion could be set to continue as the local area gentrifies. With prime residential apartments, mixed-used developments and refurbishments of listed buildings all in the pipeline, Mayfair’s “original village” could expect to see the benefit in terms of substantial price growth.
A look at Shepherd Market
Although the confines of the area itself prohibit any major further development within Shepherd Village, a look at the changes happening in wider Mayfair suggest this micro-market will still benefit substantially.
Simon Green, Sales Negotiator at Pastor Real Estate comments, “More investors should look at it and see the value and growth potential. The area has improved considerably over recent years, and there is a lot of residential development in the pipeline in the vicinity of the Market.” There are a number of nearby developments that could add value to an address in Shepherd Market. For example, a property fund has acquired real estate at 90-93 and 100 Piccadilly, as well as 95 Piccadilly, formerly home to The American Club. British Land is redeveloping a site on Clarges Street and Piccadilly, creating a mixed-use project that will create both jobs and residential accommodation.
With Mayfair already home to one of the most desirable property markets in the world, this further development will surely result in stronger price performance and higher rental rates, even in tiny pockets such as Shepherd Market.
A bright future for this historic village
Originally the site on which London’s annual May Fair was held, today, Shepherd Market is a small and bustling “village” in the heart of prime central London.
It’s popularity with buyers and tenants alike is already evidenced by growth rates that are not far behind Mayfair as a whole. Over the past 10 years, prices per square foot in Mayfair grew by 47.3 per cent; in Shepherd Market, this uptick was 41.4 per cent. Although it may not be on par yet, the fact that such a small area can produce such a strong rate of growth is surely an indicator of good things to come. Between 2013 and 2015, apartments in Mayfair let for an average of £1,257 per week. In Shepherd Market, the average rent was just £850 per week, making it a more affordable destination for renters who do not want to compromise on a central location. The average house in Mayfair was rented out for a rate of £3,674 per week, but again, tenants could make their money go further by opting for a house in Shepherd Market for just £3,206 per week.
Another factor that is sure to drive upwards the demand for housing here is the lack of supply. Of the estimated 1,685 properties available for rent in Mayfair, just 248 were located in Shepherd Market. There are some units set to be delivered here however – there are 44 schemes for which planning permission has already been granted, which combined will bring 82 new private residences to the area. A further two schemes are currently in the application process as well.
As the popularity of property in this sought-after area of London continues to grow, those that do become available for rent or sale in Shepherd Market will surely exchange hands quickly.
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