Luxury apartments in London are becoming increasingly popular among wealthy overseas property buyers who are concerned about their personal safety, according to a recent study. The research, conducted by high-end estate agency Beauchamp Estates and property service LonRes, found that affluent individuals are opting for newly built flats in high-security super-luxury apartment buildings in prestigious neighborhoods such as Mayfair, Knightsbridge, Hyde Park, and Whitehall. This trend is driven by heightened worries over personal security and privacy.
In 2023, billionaire and multimillionaire buyers spent a total of £1.3 billion on 54 luxury London properties priced at over £15 million each, compared to £1.05 billion on 49 properties in 2022. The majority of buyers came from the United States, Saudi Arabia, the United Arab Emirates, and China. The study also revealed a 137% increase in the number of super-luxury new-build London apartments sold for over £15 million, with 19 apartments worth a combined £385 million sold in 2023, compared to eight apartments worth £181 million in 2022.
The motivation behind this surge in luxury apartment purchases is the growing concern among the super-rich about potential threats to their safety. Advisers have warned them that if they fail to use their fortunes to address the cost of living crisis faced by millions of people, they may face public backlash. Progressive advisers have even cautioned that there is a real risk of insurrection and civil disruption if the wealth gap between the rich and poor continues to widen due to rising energy and food prices.
Interestingly, the study found that wealthy buyers are willing to pay significantly more for apartments than houses on a per square foot basis. Super-prime apartments were sold for an average of £4,306 per square foot, while houses were sold for £3,011 per square foot. One apartment in Mayfair even sold for over £8,000 per square foot.
The end of the year saw a flurry of luxury house sales, which Beauchamp Estates attributes to wealthy overseas families visiting London for Christmas shopping and taking the opportunity to explore and make property deals. The agency likened this behavior to domestic high-street shoppers who identify what they want to purchase but wait for the Christmas sales before making big purchases.
Despite the growing interest in luxury apartments, two of the UK’s most expensive properties on the market have failed to sell. These include 2-8A Rutland Gate, a 45-room private palace overlooking Hyde Park, with owners seeking bids around £200 million, and The Holme, a 40-bedroom house set in four acres of Regent’s Park, which is on the market for £250 million.
In a notable transaction just before Christmas, Indian billionaire Adar Poonawalla, known as “the vaccine prince” due to his family’s vaccine factories, agreed to purchase a house in Mayfair for £138 million. Poonawalla’s Serum Life Sciences company is acquiring Aberconway House, a 25,000 square foot property, from the daughter of the late Polish billionaire Jan Kulczyk. Poonawalla had been renting the house from Kulczyk’s daughter for £50,000 per week since 2021.