In the previous year, close to 200 homes in London have been sold for an impressive £10 million, reflecting a growing trend among the ultra-wealthy to invest in sophisticated urban residences rather than seeking refuge in the countryside during the pandemic. The research, conducted by the well-regarded estate agent Knight Frank, revealed that a total of 175 homes were sold for £10 million and above in the 12 months leading up to November 2023 – the highest number in eight years.
Back in 2014, just before the implementation of higher stamp duty rates for properties over £1 million, a staggering 225 homes were sold for £10 million and above. The total expenditure on these high-end properties, often referred to as “super prime” by estate agents, exceeded £3.4 billion, marking the highest combined figure since 2014 when a whopping £4.2 billion was spent.
The year 2023 is expected to witness an even higher number of sales, with several incredibly pricey transactions having recently been finalized. Notably, Indian billionaire Adar Poonawalla, famously known as “the vaccine prince” due to his family’s vast vaccine factories, recently agreed to purchase a Mayfair mansion for a staggering £138 million. The property, Aberconway House, which spans 2,300 square meters, is 24 times the size of the average English home and is being acquired by Poonawalla’s Serum Life Sciences company.
Mayfair emerged as the leading location for super-prime transactions, with 29 sales taking place, followed closely by Kensington and Belgravia. The high-end market in London saw 28 deals above £30 million, 24 in the £20-£30 million bracket, and 123 between £10 million and £20 million. Noteworthy sales included the purchase of Radlett House in St John’s Wood for a staggering £42.9 million.
On the flip side, while luxury sales in the capital soared, they experienced a decline in the countryside. Between December 2022 and August 2023, the number of £8 million-plus sales outside London fell to 35, down from 42 in the previous year.
Rory Penn, the head of London sales at Knight Frank, attributed London’s robust performance to its enduring status as a global “super city,” regardless of Brexit. He further emphasized the overlooked financial aspect, pointing out that clients can acquire a trophy home in most prime central London postcodes at the same or even lower price than around 10 years ago – making London an attractive prospect for high-end real estate investment.
Despite some fluctuations in demand due to economic factors, Knight Frank observed a notable pickup in activity over the last six weeks, coinciding with an improved economic outlook. However, it’s important to note that the two most expensive properties in the UK, 2-8A Rutland Gate and The Holme, with price tags exceeding £200 million, still remain unsold.
In conclusion, the surge in luxury home sales in London, particularly for properties priced at £10 million and above, is indicative of the enduring appeal and financial attractiveness of the city’s high-end real estate market. With demand picking up in recent weeks, it’s evident that London’s allure remains as strong as ever.
