Super wealthy buyers are spending less and buying smaller properties in prime London, according to luxury specialists Beauchamp Estates. Competition from Dubai, concerns about a Labour government and taxation worries, have combined to hit the ultra-prime market, a survey by Beauchamp reveals. Sales in central London are down in the first half of this year compared to 2023.
The annual Billionaire Buyers in London survey by Beauchamp looked at sales of luxury residential properties valued over £15 million, analysing deals data from LonRes and the agency’s own in-house information, as well as local market intelligence.
Beauchamp says that in H1 there was £731 million of deals agreed for the sale of ultra-prime homes, which was almost £100 million less, or 12%, down on the £829 million worth of deals agreed last year. There were slightly more deals though over the same period, with 46 (around eight deals per month), compared to 45.
Wealthy buyers spent an average of £16.56 million buying a London home, down from £18.5 million, and the equivalent period in 2022 when the average spend was £21 million.
There has also been a big fall in sales to speculative investors, with the amount dropping from £210 million to £64 million. Buyers from just five countries the United States, India, Saudi Arabia, the United Arab Emirates and Britain dominate the market, Beauchamp says.Paul Finch, Director at Beauchamp Estates., says: “During the first half of 2024 multi-millionaires and billionaires have downsized their residential real estate investments in London.
“In 2023 ultra-wealthy buyers purchasing homes in London valued above £15 million were acquiring large ‘main residence’ houses and mansions in the £25 million to £40 million plus price range and there were several purchases for mansions priced over £100 million in Regent’s Park and Mayfair.”
