Millionaires and Billionaires take bigger stake in prime London

Prime Central London’s ultra-prime housing market for multi-millionaire and billionaire buyers has risen by 30 per cent according to a prominent estate agent.

Over a two year period there has been a total of 92 sales for luxury properties priced over £15m with 52 sales in 2022 compared to 40 in 2021 and just 17 in 2020 – with London’s super-rich buyer market set to remain buoyant during 2023 driven by American, European, Indian and Middle East buyers says a new survey by Beauchamp Estates.

The firm says that during parts of 2022 London’s super-top-end property transactions had been driven by American buyers, because of the strength of the US Dollar against the Pound Sterling giving them an effective 30 per cent discount on their cost of purchasing property in London. 

It estimate that during 2022 50 per cent of the deals in Prime Central London for homes valued over £15m had been to American buyers, purchasing around £620m worth of luxury property; with Swiss, French, Indian and Middle East buyers being the other key acquirers of luxury homes in London. 

Rising interest rates have increased cash purchases by over 60 per cent for those transactions in excess of £15m, a significant shift from 2021 and 2020 when the majority of deals were funded by advantageous interest-only super-prime mortgages. 

Over the last two years London’s super-rich homes deals have achieved £3,259 per square foot on average with the highest in 2022 hitting £10,000 per square foot in Belgravia. There is a significant price premium for newly built or newly refurbished dressed turn-key homes with concierge and lifestyle amenities.

Over the last 12 months the SW1 postcode (Belgravia/Knightsbridge) has been London’s top address for ultra-prime sales, followed by the W1 postcode (Mayfair).  Other key addresses for £15m plus sales during 2022 include St John’s Wood (NW8), Kensington, Chelsea, Hampstead and Notting Hill.

Beauchamp Estates say global uncertainty and the underperformance of alternative investments have driven many multi-millionaires and billionaires to return to investing in London real estate as a proven safe haven and stable asset class. 

Agency founder Gary Hersham comments: “During 2022 there has effectively been one billionaire buyer property deal per week in Central London with war, pandemic and the sluggish performance of alternative investment markets driving multi-millionaires and billionaires to return to investing in London residential real estate which is a proven safe haven and stable asset class.” 

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