The super-rich are returning to prime London

Using LonRes data, it found that there have been £340m worth of deals agreed for the sale of ultra-prime homes.

Beauchamp Estates highlight that this is down on the £404 million worth of £15m plus deals agreed in 2022 over the same period, but said that the steady flow of deals during the first half of this year indicates that there remains a sustained and healthy appetite amongst the world’s super rich for buying trophy homes in the UK capital.

It is currently handling instructions with asking prices of above £40m.

The agent added that the size and value of luxury London homes being purchased, including houses, mansions and apartments, is significantly up on 2022.
The average size of £15m-plus house being purchased was 7,000 sq ft, whilst during the same period in 2023 the houses being purchased averaged 11,200 sq ft, almost double the size.

The acquisition of larger properties has raised the average value of the £15m plus deals being recorded, in the first part of 2022 the average price of the properties being acquired was £21 million, this year that figure has risen to £30m.

Likewise, the average size of apartment and penthouse being acquired has also risen, up from 4,844 sq ft in the first half of last year to 5,232 sq ft this year. The average price has risen from £22 million in 2022 to £25 million for 2023.

Beauchamp Estates believes that the London houses and apartments being purchased at values above £15m this year are larger in size because the majority of purchasers are buying as their primary residences. 

Last year the majority were buying London homes that were their second, third, fourth or fifth property, not their primary residence. 

While Belgravia and Knightsbridge were the two top locations for ultra-prime home sales in 2022, during the first half of 2023 it is Mayfair and Hyde Park which have dominated.

The market is currently being driven by buyers and applicants from Britain, India, America, Malaysia and China, Beauchamp Estates said.

The gradual return of buyers from Asia marks the start of a return to normal international trading patterns following the disruption to global travel and commerce caused by the pandemic, the research suggests.

Gary Hersham, founding director of Beauchamp Estates, said: “During the first five months of 2023 there has effectively been two billionaire buyer property deals per month in Central London. 

“The size and value of luxury London homes being purchased is significantly up on 2022, the houses being acquired currently average 11,200 sq ft, almost double the size of the properties bought last year. There remains a sustained and healthy appetite amongst the world’s super rich for buying trophy homes in the UK capital.” 

Marcus O’Brien, head of Beauchamp Estates Private Office, said: “The UK economy is expected to grow steadily from 2024 onwards and over the next five years most analysts anticipate prime London average prices to rise by around 20%. 

“Compare this projected growth against global stock markets, which are volatile, and investments in the new tech and digital company sectors, where returns have been mixed. The price of gold has also risen more modestly in the last few years. This is why London real estate continues to attract the global super-rich.”–claim?source=newsticker

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