London’s luxury property market is seeing a quiet reshuffle among its wealthiest residents as many head for sunnier shores.
Roughly 70 percent of sellers listing their homes in the city for at least $20.1 million this year are high-net-worth individuals who live in the United Kingdom, but claim their primary residence abroad, according to a report by Beauchamp Estates.
The firm describes a “house-swapping” wave: London’s rich are selling their large homes for places like Dubai, Milan, Monaco, Miami and the south of France. Meanwhile, wealthy Middle Eastern and American buyers are swooping in to replace them.
London reported a 13 percent year-over-year decline in ultra-luxury sales volume in the first half of the year. While that drop marks a slowdown from the 23 percent plunge recorded the year prior, it signals ongoing volatility at the top of the market, Mansion Global reported.
The pattern appears strategic rather than panicked. Many U.K. sellers are keeping a foothold in London with smaller pied-à-terres, opting to trade large trophy homes for more diversified international portfolios. Rising crime and living costs are still nudging Americans toward London.
Meanwhile, Gulf-based buyers — mainly from the UAE — represent a major force, often targeting deals in the $32 million to $64 million range, some stretching as high as $192 million.
The second quarter accounted for 60 percent of all ultra-luxury transactions in the first half. Beauchamp’s directors say pricing has reached a point where domestic and international buyers see long-term upside.
American and Middle East buyers accounted for around 50 percent of ultra-prime sales in the U.K. in the first half of the year, up five percentage points from last year. Domestic buyers’ transactions also jumped five percentage points in the same period.
Beauchamp’s Jeremy Gee framed the climate as a “once in a generation” buying opportunity, noting that values remain below 2014 highs despite improving fundamentals.
“The deals driving the London market are either needs-based, buying best-in-class turnkey product or value-driven transactions,” said Beauchamp founding director Gary Hersham.
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