Home Property New wealth survey finds there is a 25% fall in billionaires buying homes in London during 2024

New wealth survey finds there is a 25% fall in billionaires buying homes in London during 2024

6th Jan 25 4:44 pm

Londonโ€™s ultra-prime housing market for multi-millionaire andย billionaireย buyers dropped by 25% in unit sales and 34% by value of property sold during 2024 with 40 sales for luxury properties priced over ยฃ15 million in 2024 (ยฃ856.5 million of sales in total), compared to 54 sales in 2023 (worth ยฃ1.3 billion) โ€“ the super-prime market disrupted by a combination of Stamp Duty rises, changes to the Non-Dom regime, the UK General Election and the new Labour government says a new wealth survey by Beauchamp Estates.

The latestย year-end 2024ย edition of the annualย Billionaireย Buyersย in Londonย survey byย Beauchamp Estatesย looked at sales of luxury residential properties valued over ยฃ15 million between Januaryย and Decemberย 2024, compared to 2023,ย analysing deals data fromย LONRES, combined with the agencyโ€™s own in-house deals data and local market intelligence.

Beauchamp Estates say that the sales market for homes valued above ยฃ15 million in London during 2024 was driven by younger international buyers, aged from their late 20s to mid 40s, who due to their youth can take a long-term view on investing in the capitalโ€™s real estate.

These younger buyers prefer dressed โ€œturn-keyโ€ homes and purchase either newly built lateral apartments or houses that have had a major refurbishment. As a result, the London market for second-hand luxury homes, especially those requiring some refurbishment, significantly reduced during 2024.

During 2024 there were 10 sales of super-luxury new-build London apartments priced over ยฃ15 million sold, worth ยฃ212.7 million, compared to 19 sales worth ยฃ385 million in 2023. The apartments sold during 2024 averaged 4,260 sqft in size, each costing an average of ยฃ4,766 per sqft (the premium price underlining their new build status). In 2023 the apartments sold were larger at 5,810 sqft, averaging ยฃ4,306 per sqft in value.

Beauchamp Estates say that the drop in apartment sales during 2024 was due to a combination of a current lack of supply of new build homes in favoured addresses such as Mayfair and the โ€œstop, startโ€ nature of the London sales market during 2024 generated by Stamp Duty rises, the General Election, the Autumn Budget and announced changes to the Non-Dom tax regime.

The number of houses priced over ยฃ15 million sold in 2024 fell by almost 15% with 30 sold (ยฃ643.8 million of sales), compared to 35 sold in 2023 (worth ยฃ925 million). The average size of ยฃ15 million plus house sold in 2024 was 8,382 sqft in size, almost 445 sqft smaller than the equivalent 2023 figure.

Beauchamp Estates reveal that of the 40 deals 26 were for homes valued between ยฃ15 million and ยฃ25 million and 14 were for homes valued above ยฃ25 million, including two sold for ยฃ60 million. Unlike the previous four years, during 2024 no homes in London were sold for values above ยฃ100 million. Beauchamp Estates say around 75% of all ยฃ15 million plus deals during 2024 were cash purchases, up from 70% in 2023 and 60% in 2022.

During 2024 American buyers accounted for 25% of all super-prime sales, up from 18% in 2023, the largest buyer group by country of origin, followed by buyers from the Middle East, who accounted for 20% of all sales, up from 18%. The proportion of super-prime sales to buyers from the UK fell from 12% to 10% between 2023 and 2024, likewise for buyers from Eastern Europe (13% to 8%), the dramatic drop due to the ongoing Russia-Ukraine war, Western European buyers (6% to 5%) and buyers from India/South Asia (23% to 20%). Only buyers from China and Hong Kong grew in number, up from 10% to 12%.

During 2024 there were significant winners and losers amongst Londonโ€™s most sought after addresses. The biggest winner was Mayfair, which accounted for 9 of the 40 ยฃ15 million plus deals (up from 8 deals in 2023), including a ยฃ60 million off market deal and a series of ยฃ20 milion plus deals for homes in the new apartment buildings in Grosvenor Square, such as One Grosvenor Square, and the Clarges Mayfair apartments overlooking Green Park.

Beauchamp Estates highlight that Mayfair is now the โ€œaddress of choiceโ€ in London for the worldโ€™s super-rich, with American, Middle East and Indian/South Asian buyers drawn to the fashionable restaurants of Mount Street, the boutiques of Bond Street and the new luxury apartment buildings. Beauchamp Estates recently sold an ยฃ8 million penthouse in Mayfair to an American buyer and early in 2024 an ยฃ11.5 million duplex residence on Charles Street to an American family, the husband works in finance.

An indication of the pent-up demand for new apartments in Mayfair is the ยฃ2 billion 1 Mayfair apartment building being developed by Caudwell, where prices start from ยฃ35 million. Currently the palatial apartment scheme has a large โ€œwaiting listโ€ of registered applicants for when the building completes in early 2026.

Another popular address in 2024 with American buyers was Chelsea, with 6 ยฃ15 million plus deals, up from 4 in 2023, including a โ€œproperty swapโ€ agreed by fashion billionaire Tom Ford and the vendor of the mansion he bought in Chelsea. The vendor acquired Tom Fordโ€™s Knightsbridge apartment in exchange for Ford acquiring his Chelsea property. The entire deal was reported to be worth ยฃ80 million, understood to represent around ยฃ60 million for the house and circa ยฃ20 million for the apartment.

Another winner during 2024 was St Johnโ€™s Wood with 6 deals, up from 2 in 2023, with buyers from China, Hong Kong and the Middle East purchasing large turn-key houses, the result of major refurbishments, in addresses including Avenue Road, Queenโ€™s Grove and Acacia Road.

Other favoured addresses in 2024 included Kensington, with 5 deals, down from 7 in 2023, and Notting Hill, with 3 deals, up from 2 in 2023. Both addresses are popular with young American families who are currently the main driving force in Londonโ€™s super-prime market. In the Hyde Park Estate, in between Notting Hill and Mayfair, Beauchamp Estates sold a ยฃ39.5 million grand house in Hyde Park Gardens to a family from the Middle East.

The biggest loser in 2024 was Knightsbridge, with just 2 ultra-prime deals, down from 8 in 2023. Knightsbridge now suffers from a large supply of outdated apartment buildings and period properties which require refurbishment. The age of many of the apartment buildings also means that they generate high maintenance charges, which also deters buyers. Beauchamp Estates sold a second-hand ยฃ10.95 million apartment in The Knightsbridge to a family from the Middle East who are now going to refurbish the property.

Another runner-up during 2024 was Belgravia with just 3 deals, down from 13 in 2023. Belgravia has a large supply of second-hand houses currently for sale and these are taking time to sell as international buyers prefer to acquire houses that offer the benefit of a full refurbishment and modernisation. Beauchamp Estates was fortunate to sell the former Italian Embassy in Lygon Place for ยฃ21.5 million to an Asian billionaire. Previously offices, the mansion had been converted from an Embassy back to residential use and benefitted from a recent refurbishment and was well presented, which assisted the sale significantly.

Hampstead and Regentโ€™s Park, both with 1 deal each, have traditionally been popular addresses with wealthy families from Russia and Eastern Europe. The sharp downturn in buyers from Eastern Europe, has impacted on trophy home sales in both districts during 2024.

For the London homes sold in 2024 above ยฃ15 million the percentage difference between the average asking price and the average achieved price is -7.12%, compared to -5.6% in 2023.

Looking at how Londonโ€™s super-prime residential market will perform in 2025ย Beauchamp Estatesย forecast that for properties priced above ยฃ15 million values for new and newly refurbished homes in Mayfair will rise by 1% or 2%, whilst in markets such as Knightsbridge, Belgravia and Hampstead, especially for second-hand homes that require refurbishment, prices are likely to soften by between -2% to -4%.

The market in 2025 will be driven by buyers from the United States and Middle East, in particular purchasers from Saudi Arabia, the United Arab Emirates and Qatar.

Jeremy Gee, Managing Director of Beauchamp Estates said, โ€œDuring 2024 American and Middle East buyers accounted for almost 50% of super-prime sales across the Londonโ€™s most prestigious addresses.

“Mayfair was the top performing trophy home address in the capital during 2024, favoured by wealthy buyers from the Middle East, America and India. Chelsea and Notting Hill, both popular with American buyers, also performed extremely well. Stamp Duty, Non-Dom changes, the Election and new Labour government have disrupted the sales market.

Over the next four years the wave of American buyers into London looks set to increase further. Last time Donald Trump was in power we saw a significant 20% upturn in wealthy Democrats buying ยฃ15 million plus homes in London to live out the first Trump administration. Since June 2024 onwards we noticed a 30% rise in overseas clients enquiring about suitable homes in the capital that they could purchase, and the largest group of buyers have been Americans.โ€

Paul Finch, Director and Head of New Homes at Beauchamp Estates added, โ€œA key reason for this yearโ€™s significant upturn in American and Middle East buyers in London is the exchange rate advantage that Americans and Middle East buyers benefit from using dollars to buy homes in the UK capital.

“Back in 2016 American buyers effectively benefitted from a 7% price discount due to the strength of the US dollar against the pound. In 2024 this has grown to an 18% price discount. The exchange rate benefit is similar for Middle East buyers, since the Qatari and Saudi Riyal and UAE Dirham shadow the US dollar, so Gulf buyers have also seen their buying power dramatically increase due to exchange rate shifts.โ€

For further information onย Beauchamp Estatesย Tel:ย +44 (0)20 7499 7722ย or visitย www.beauchamp.com

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