In the past year, nearly 200 houses in London were purchased for £10m as wealthy individuals prioritize luxury homes in the city over a desire for a country retreat due to the pandemic.
According to a study conducted by real estate agency Knight Frank, 175 houses were purchased for over £10 million in the 12 months leading up to November 2023, marking the highest number in eight years.
In 2014, there was a surge in high-end home sales prior to the implementation of increased stamp duty rates for properties valued at £1m or more. A total of 225 homes worth over £10m were sold.
Real estate agents described the properties as “super prime” and a total of over £3.4bn was used for their purchase. This is the largest amount spent since 2014, when £4.2bn was spent.
It is expected that the total amount for the 2023 fiscal year will be even greater, as several very expensive sales have recently been finalized. This week, Indian billionaire Adar Poonawalla, also known as “the vaccine prince” because of his family’s large vaccine production facilities, has agreed to purchase a mansion in Mayfair for £138m.
Poonawalla’s Serum Life Sciences is acquiring Aberconway House, a property that spans 2,300 square meters (25,000 square feet) and is 24 times larger than the average English home. The house was previously owned by the daughter of the late Polish billionaire Jan Kulczyk. Poonawalla has been familiar with the property since 2021, having rented it from Kulczyk’s daughter for £50,000 per week.
In Mayfair, 29 sales occurred for super-prime properties, making it the top location. Kensington had 24 sales and Belgravia had 23. Overall, there were 28 transactions in London for properties above £30m, 24 in the £20-£30m range, and 123 between £10m and £20m.
The property known as Radlett House, located in the St John’s Wood area, is a genuine country-style home. It sits on a private road and has its own exclusive entrance to Primrose Hill. The house was recently sold for £42.9 million.
Although sales in the capital saw a rise in price, there was a decrease in the countryside. The quantity of sales exceeding £8m outside of London dropped from 42 to 35 between December 2022 and August 2023 compared to the previous year.
Rory Penn, head of sales at Knight Frank in London, stated that there are two factors that contribute to the city’s impressive performance. The first is its continuous allure as a top global city, ranked alongside New York, Paris, and Singapore. Regardless of Brexit, London remains a prominent destination on this list.
Another frequently ignored factor is the financial aspect. In numerous high-end areas in central London, clients can purchase a luxurious home at a price that is either the same or even less than what it was approximately a decade ago. This suggests that London is currently offering true value, potentially at the bottom of a 20-year cycle.
Luxury sales have not remained consistently robust throughout the year, as demand has been dampened by the mini-budget implemented at the end of the previous year, as well as inflation and interest rates leading to a decrease in activity. However, Knight Frank has recently observed a significant increase in sales over the past six weeks, potentially due to an improved economic forecast.
Unfortunately, the two priciest properties currently for sale in the UK have not been purchased. These properties are 2-8A Rutland Gate, a grand residence with 45 rooms and a view of Hyde Park, with a desired price range of £200m, and The Holme, a massive estate with 40 bedrooms and situated on four acres in Regent’s Park, listed for £250m.
Source: theguardian.com
