The London Luxury Quarter looks set to receive £1.3bn of investment over the next 5 to 10 years, a report has revealed.
The report from JLL, titled ‘Hospitality and service within the London luxury quarter’, highlights a series of developments across St James’s, Grosvenor Square, Cork Street and Bond Street.
These schemes are being driven by a 139% increase in office take-up in Mayfair, totalling £1bn of transactions in 2013.
The report highlights increasing demand from international hedge funds, boutique private equity firms and investment banks looking to establish European headquarters in the area.
Mark Henderson, chairman of the London Luxury Quarter, said: “The quarter has redefined the interplay between luxury and business on a global scale and this has triggered this cluster effect of boutique investment banks and private equity firms to move into the area.
“These types of businesses ultimately want to be near their competition and also have the luxury amenities to entertain their clients on their doorstep.”
Mark Smith, head of central London retail at JLL, said: “In the first quarter of this year, Bond Street saw rents hit a record high of over £1,200 per sq ft.
“Even with these exceptional rental levels, the London Luxury Quarter is still enjoying rapid expansion and strengthening of the luxury offering and it’s likely that ongoing demand could see continued growth of up to 20% rental value terms.”
The report was commissioned by New West End Company and Heart of London Business Alliance.