Investment in £20m-plus property in London hits five-year high
Amid Brexit uncertainty, London’s UHNWIs are increasingly investing in real assets. Tom Bill, our Head of London Residential Research, shares key insights on the state of the super prime market.
1 mins to read
- There are more ultra-high net worth individuals based in London than in any other global city, and that they have a growing propensity to invest in real assets
- Last year saw the highest number of £20 million-plus deals in London (38) since 2014
Brexit-related uncertainty has curbed trading activity across all UK residential markets over the last 12 months.
While London’s super-prime (£10 million-plus) price bracket is no exception, it would be too simplistic to view this particular market entirely through the prism of UK politics.
First, the demand drivers are more numerous and complex. More wealth is being created in the world than ever before and it continues to move across borders, as our Wealth Report this year found.
Combined with the fact that there are more ultra-high net worth individuals based in London than in any other global city, and that they have a growing propensity to invest in real assets, it is perhaps not surprising that last year saw the highest number of £20 million-plus deals in London (38) since 2014.
Overall, there were 109 transactions above £10 million in the year to January 2019, a 19% decline compared to 134 over the previous 12-month period. Meanwhile, the total value of transactions decreased by a smaller figure of 11% over the same period, reflecting the uplift in activity in the higher price brackets.
Notting Hill and Mayfair are the two markets where transaction volumes grew over the same period. While demand in Notting Hill has grown due to the extent of price adjustments in the area and its needs-driven buyer base, Mayfair has benefitted from a high-quality new-build pipeline.
The latest London map of super-prime sales activity is below.