Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani sold his Mayfair mansion to another ruling family member for GBP 39 million in October, one of London's priciest home deals this past year. The Grade II listed property, between Hyde Park and Berkeley Square, was purchased by Sheikh Mohammed in 2021. The sale, conducted directly between family members, may aim to reduce agency fees or inheritance tax liabilities. Despite a trend of Qatari elites acquiring properties in Mayfair, the percentage of Middle Eastern buyers in London's top areas has halved since 2019, reflecting shifting investment strategies amid broader market trends.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani has sold his Mayfair mansion to another member of the ruling family. The property was sold for GBP 39 million in October, making it one of the most expensive home deals in London in the past year.
The mansion, a Grade II listed property, is located between Hyde Park and Berkeley Square. Sheikh Mohammed purchased the home in 2021, according to a UK filing, but the identity of the new buyer remains undisclosed. Transactions like this within ultra-wealthy families can be strategic, often aimed at reducing agency fees or minimizing inheritance tax liabilities.
Direct negotiations took place between Sheikh Mohammed and the fellow royal family members for this sale. Last year, only a few properties in London were sold for over GBP 30 million, including a GBP 65 million Chelsea mansion bought by UAE President Sheikh Mohammed bin Zayed Al Nahyan.
Mayfair, often referred to as 'Little Doha,' has seen a surge in property acquisitions by Qatari elites over the years. Abdulhadi Mana Al-Hajri, the owner of the Ritz Hotel and the brother-in-law of Qatar's ruler, purchased a GBP 37.5 million townhouse near Sheikh Mohammed's former residence last year.
Despite this trend, some Qatari royals and wealthy families, like the Al-Khayyat family, have been contemplating selling their London properties in the past year. This shift could be indicative of broader market trends or changing investment strategies among Middle Eastern buyers.
According to broker Hamptons International, the percentage of Middle Eastern buyers in London's most prestigious areas has declined. In 2019, they made up 10% of all purchases in these areas, but this figure has dropped to 5% over the past 12 months. This decrease suggests a shifting dynamic in the luxury property market, possibly influenced by global economic factors or regional investment trends.
London remains a prime location for international buyers, particularly from the Middle East, who are attracted by the city's stable market, prestigious properties, and strategic investment opportunities. However, the recent decrease in purchases by Middle Eastern buyers indicates a need to watch how global economic and political changes might further influence these trends.
The sale of the Mayfair mansion is a reminder of the significant impact that Middle Eastern investors have on London's real estate market. As the market evolves, it will be interesting to see how the strategies of these wealthy investors adapt. The ongoing interest in prime London properties underscores the city's enduring appeal, but shifts in buyer demographics and investment strategies could reshape the landscape in the coming years.
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