London and New York are home to some of the priciest and most exclusive property markets in the world, and both cities are attractive destinations for high net worth property investors as a result.
Yet between the culture, history, vibrant entertainment and social scenes in both cities, choosing which city to look for an investment property in can be difficult.
There are obvious cases to be made for both, especially when looking at two relatively comparable sub-markets, London’s Mayfair versus the exclusive Upper East Side in Manhattan. Both are exclusive, luxurious neighborhoods, and property is therefore high in value with strong demand for both rentals and property to purchase.
So when sizing up the Upper East Side (UES) and Mayfair, what are the key differences and comparisons, and which should you choose for your next investment?
Investing in Mayfair
Mayfair is arguably a more exclusive a neighborhood than the Upper East Side. For a start, there’s less space for development given it’s central location and the number of listed protected buildings here, all of which drives up the demand versus supply. There are 5,100 permanent residents living in Mayfair compared to just 206,908 residents on the Upper East Side, and this can be attributed to the fact that this part of Manhattan geographically supersedes Mayfair, spanning 4.56 km². It is also one of the most historic parts of London, dating back to around 1686.
There are five airports within easy reach in London, making it the better-connected city for international investors where air travel is concerned. However, locally, the transit system in NYC is far more extensive than that of London. The 24-hour subway has an impressive 249 miles of track, covering more ground while costing users less. When it comes to culture, Mayfair has plenty to offer discerning residents in terms of shopping, dining, exclusive members clubs, and the world famous West End theatre district just moments away.
Investing in the Upper East Side
New York came in at no. 47 out of 221 cities reviewed on The Mercer Quality of Life survey, and it’s not hard to see why.
There is plenty in the way of luxury residential property, international cuisine, a vibrant nightlife scene, large parks and upscale architecture. Throw in a few celebrity neighbors, and you have the perfect recipe for an exclusive, expensive and in-demand real estate market. The cost of living is high in both cities – almost equally so, in fact. The cost of living (which includes work accommodation per person) is $112,800 in London, compared to $111,300 in NYC. Also similar are crime rates, with Numbeo asserting that New York experiences a “moderate” level of crime with a rating of 51.29 (compared to London’s 56.09).
A look at the numbers
One thing is certain –whichever city you decide to invest in, you’ll need a substantial amount of capital to do so. A four-bedroom property in Mayfair can set you back £25,000,000, while a four-bed property in the Upper East Side is currently listed as $35,000,000 . However, with so much on offer in both cities that is bound to attract high net-worth, long-term tenants for work, an investment in either Mayfair or the Upper East Side could prove incredibly lucrative.
The average property price in Mayfair is listed as being £2,717,184, compared with a median property price of $1,312,500 on the Upper East Side. Looking at a smaller property can still yield impressive returns given the high demand for property in these exclusive postcodes; a small one bedroom in Upper East Side can fetch $1,795, while a one-bed in Mayfair (W1) averages £5,493 pcm in rent.
Courtesy TheTopTier Digital Media