London's ultra-prime housing market for multi-millionaire and billionaire buyers increased by 10% in unit sales and 25% by value of property sold in 2023, according to a new survey by Beauchamp Estates.
The survey reveals that the rise was driven by American, Saudi Arabian, UAE, and Chinese buyers purchasing newly built apartments located in high-security super-luxury apartment buildings offering concierge security and amenities in addresses including Mayfair, Knightsbridge, Hyde Park and Whitehall. During 2023, there was a 137% rise in the number of super-luxury new-build London apartments priced over €17.6m (£15m) sold, with 19 sales worth almost €450.5m (£385m), up from just 8 sales worth €211.77 (£181m) in 2022. These apartments average 454.7m2 (4,894 sqft) in size, each costing an average of c. €54,229 perm2 (£4,306 per sqft).
However, the number of houses and mansions priced over €21m (£15m) sold in 2023 fell by almost 15% with 35 sold, compared to 41 sold in 2022. The average size of €17.6m (£15m) house sold in 2023 is c. 820m2 (8,826 sqft) in size, almost 44m2 (480 sqft) larger than the equivalent 2022 figure.
Beauchamp Estates say that this is because buyers have been purchasing houses for personal use rather than for buy-to-flip or rental investment. Beauchamp Estates estimate that during 2023, 60% of the deals in Prime Central London for homes valued over €17.6m (£15m) were to buyers from just four countries – the United States, Saudi Arabia, the United Arab Emirates and China – who purchased around €912.6m (£780) worth of luxury property; with Indian, Israeli, and Nigerian buyers being the other key acquirers of luxury homes in London.
Around 70% of all €17.6m (£15m) plus deals during 2023 were cash purchases, up from 60% in 2022 and 45% in 2021. Beauchamp Estates say this is because high-interest rates and a squeeze in bank lending have led to a significant decline in so-called preferential ‘billionaire mortgages’ which in previous years billionaires used to fund residential buy-to-flip opportunities. Over the last 12 months, Belgravia has been London’s top address for ultra-prime sales, accounting for 13 (24%) of the 54 €17.6m (£15m) plus deals, followed by Mayfair and Knightsbridge, both with 8 deals each, Kensington with 7 deals, followed by Chelsea (4), Hyde Park (4) and Whitehall (3). There have also been €17.6m (£15m) plus deals in Hampstead, Notting Hill, St John’s Wood, Chelsea, Regent’s Park and Richmond. These 13 addresses are the most sought-after by global wealth in London. In both 2023 and 2022, the busiest sales period for billionaire homes has been between March to April and during October to December.
The latest year-end 2023 edition of the annual Billionaire Buyers in London survey by Beauchamp Estates has looked at sales of luxury residential properties valued over €17.6m (£15m) between January and December 2023, compared to 2022, 2021 and 2020, analysing deals data from LONRES, combined with the agency’s own in-house deals data and local market intelligence. In four years London’s billionaire deals market has more than doubled in size.
London's giga-prime housing market has seen the emergence of over 20 homes valued at over £100 million, with elite properties in just seven locations. During 2023, there were two major giga-prime deals, including the sale of Aberconway House in Mayfair for €161.5m (£138m). Beauchamp Estates predict that for properties priced above €17.6m (£15m), values will rise by 1% or 2%, with the volume of deals likely to rise by 10%, driven by buyers from five key countries, including the United States, Saudi Arabia, the United Arab Emirates, China and India.
Gary Hersham, Founding Director of Beauchamp Estates said: “During 2023 the volume of £15 million plus deals in London’s ultra-prime housing market rose by 10% in unit sales and 25% by value of property sold, with the market dominated by buyers from just four countries – the United States, Saudi Arabia, the United Arab Emirates and China. Buoyant oil and gas prices and booming domestic property markets have generated huge cash reserves in Saudi Arabia, Abu Dhabi and Dubai and the Sheikhs have chosen to invest a significant chunk of these revenues in London super-prime residential property. The Middle East and American buyers have made their purchases in London’s so-called ‘platinum triangle’ - Mayfair, Belgravia and Knightsbridge – which is why these three addresses have been where the most £15 milion plus deals have taken place in 2023. During 2023, just as in 2022, there was effectively one billionaire buyer property deal per week in Central London, which indicates that the capital’s residential real estate is viewed as a proven safe haven and stable asset class.”
Jeremy Gee, Managing Director of Beauchamp Estates said: “During 2023 we witnessed the return of mainland Chinese and Hong Kong buyers to London as travel restrictions for Chinese nationals has lifted. Chinese buyers were a significant driver in London’s ultra-prime residential market during 2023, buying trophy homes in locations including St John’s Wood, Hampstead and Highgate. Whilst American and Middle East buyers focused on Mayfair, Belgravia and Knightsbridge, buyers from China, Hong Kong and Nigeria looked at North-West London and purchased houses with large gardens in leafy addresses such as St John’s Wood, Regent’s Park and Hampstead. London continues to ‘hold-its-own’ on the world property stage despite rising competition provided by locations such as Dubai, Miami and the South of France.”
