A recent Beauchamp Estates survey highlights a shift in London's high-end real estate sector, where properties priced above GBP 15 million are seeing decreased total values and average sale prices compared to early 2023. The total value of transactions fell by 12%, from GBP 829 million to GBP 731 million, with average buyer spending declining from GBP 18.5 million to GBP 16.56 million. Factors contributing to this trend include competition from Dubai's luxury market, potential tax changes under a Labour government, and economic uncertainties. Despite these challenges, transaction volumes have marginally increased, indicating ongoing interest, albeit with a preference for smaller, more manageable luxury properties over larger estates.
London's luxury property market is experiencing a change, with wealthy buyers spending less and opting for smaller homes. A recent survey by Beauchamp Estates, a luxury real estate specialist, reveals this trend in the city's most expensive neighbourhoods.
The survey, which focuses on properties priced above GBP 15 million (approximately INR 18.4 billion), shows a decline in both the total value and average price of sales compared to the first half of 2023. The total value of deals agreed upon dropped by 12%, from GBP 829 million to GBP 731 million (a decrease of nearly GBP 100 million). The average amount spent by wealthy buyers also decreased, falling from GBP 18.5 million to GBP 16.56 million.
Experts attribute this shift to several factors. Competition from Dubai's booming luxury market is a significant influence. Additionally, potential tax increases under a Labour government and ongoing economic concerns are also playing a role in buyer decisions. Speculative investors, who previously bought luxury properties for future resale, have also become less active, with the value of these transactions dropping from GBP 210 million to GBP 64 million.
Interestingly, the number of deals actually increased slightly compared to the same period in 2023 (46 deals in H1 2024 vs 45 deals in H1 2023). This suggests that wealthy buyers are still interested in the London market, but they're focusing on smaller properties. Large mansions and estates, previously popular choices in the GBP 25 million to GBP 40 million plus price range, and even properties exceeding GBP 100 million in areas like Regent's Park and Mayfair, are seeing less demand.
The long-term impact of this trend remains to be seen. However, it suggests a potential change in the character of London's ultra-luxury property market. Buyers may prioritise smaller, more manageable properties that offer a good value proposition. This could lead to a market with a wider range of options for high-net-worth individuals looking to invest in London real estate.
Advertisement
Facebook
Whatsapp
