Bigger is Better

The world’s super-rich have been busy buying even larger, more luxurious and valuable homes in Prime Central London during the first half of 2023, compared to the same period in 2022, with the capital’s super-rich buyer market set to remain buoyant during the remainder of 2023 driven by American, European, Indian, Malaysian and Chinese buyers says a new survey by Beauchamp Estates.

This special mid-year 2023 edition of the annual Billionaire Buyers in London survey by Beauchamp Estates has looked at sales of luxury residential properties valued over £15 million between January and May 2023, compared to the same period in 2022, analysing deals data from LONRES and the agency’s own in-house deals data and local market intelligence.

Beauchamp Estates say that it has been a busy start to the year in the ultra-prime residential market in London, between January to May 2023 there have been £340 million worth of deals agreed for the sale of ultra-prime homes in Prime Central London priced above £15 million.

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

Beauchamp Estates observe that the most striking trend in London’s ultra-prime residential market during the first half of 2023 is that the size and value of luxury London homes being purchased, including houses, mansions and apartments, is significantly up on 2022.

Beauchamp Estates reveal that during the first five months of 2022 the average size of £15 million plus house being purchased was 7,000 square feet, whilst during the same period in 2023 the houses being purchased average 11,200 square feet, almost double the size.

The acquisition of larger properties has raised the average value of the £15 million 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 £30 million.

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

Beauchamp Estates believe that the London houses and apartments being purchased at values above £15 million this year are larger in size because the majority of purchasers are buying as their primary residence, hence they are wanting larger and therefore more expensive properties. Last year the majority were buying London homes that were their second, third, fourth or fifth property, not their primary residence.

Beauchamp Estates observe that during the first half of 2022 Belgravia and Knightsbridge were the two top locations for ultra-prime home sales, during the first half of 2023 it is Mayfair and Hyde Park which have dominated the deals marketplace and seen the highest number of sales agreed. The average £ per square foot value being achieved on these ultra-prime deals in the first half of 2023 is just over £3,100 per square feet, virtually unchanged from 2022.

Beauchamp Estates say that the £15 million plus residential market in London is currently being driven by buyers and applicants from Britain, India, America, Malaysia and China. 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 COVID-19 pandemic.

Gary Hersham, Founding Director of Beauchamp Estates says: “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 square feet, 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 says: “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.”

Beauchamp Estates has had an extremely good and busy start to 2023 in terms of sales deals. In Primrose Hill Beauchamp Estates has recently sold Hollywood film producer Tim Burton’s former London mansion for £17.5 million, one of the biggest sales in the local marketplace. Similarly in Mayfair the agency has sold an apartment close to Claridges Hotel for £9 million and in Bayswater an unmodernised townhouse for £6.5 million.

Because the £15 million plus sector of the London marketplace is particularly buoyant at present Beauchamp Estates are currently handling a vast number of instructions where each have sales asking prices of over £40 million.

Current ultra-prime sales instructions being managed by Beauchamp Estates include 2-8a Rutland Gate in Knightsbridge, a mega-mansion providing 62,000 square feet of living space with a guide price of £225 million; a 30,000 square foot main house and mews house on Avenue Road, with a private art gallery and a spectacular swimming pool room featuring a 30ft high ceiling with a guide price of £110 million; Denham Place, a Grade I Listed 28,525 square foot private palace set in 43 acres of parkland with a guide price of £75 million and Grafton Street, a 14,000 square foot mansion, formerly the global headquarters of Gucci, which has an asking price of £55 million.

www.beauchamp.com