Sales of Trophy Homes in London’s Posh Mayfair Neighborhood Have Doubled Since 2022
London’s Mayfair neighborhood isn’t just one of the most coveted districts in the British capital; it’s also one of the most expensive. A new report from Beachamp Estates found that the number of sales of high-end properties priced at £10 million and up (or roughly $12.7 million) has doubled in the past year. The study also showed that a total sum of £313 million (about $398 million) was spent on trophy homes in 2023. For context, that’s nearly three times the £123 million ($156.5 million) that was logged in 2022.
“During 2023, the Mayfair super-prime housing market has boomed,” Gary Hersham, founding director of Beauchamp Estates, says in a press statement. “Mayfair is currently the most sought-after address in Prime Central London for wealthy home buyers from around the world.”
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According to the report, the growth of Mayfair’s super-prime market is being driven by deep-pocketed shoppers from the U.S. and the Middle East. More specifically, high-net-worth individuals from Saudi Arabia and the UAE splashed out more than £80 million ($101.8 million) on residential real estate in Mayfair in the last few months.
On an even more granular level, a whopping 70 percent of the homes sold for more than £10 million have been large lateral apartments. The brokerage noted that units measured an average of 5,447 square feet and traded for a median of £21 million ($26.8 million).
“Two major wars and the poor performance of alternative investment markets have encouraged multi-millionaires and billionaires to return to investing in London residential real estate, which is a proven safe haven and stable asset class,” adds Jeremy Gee, managing director of Beauchamp Estates. “Mayfair and Hyde Park have been the most popular destinations for overseas buyers from the U.S. and Middle East looking for homes in the UK capital.”
Elsewhere in the world, super-prime properties with attention-grabbing prices are seeing steep discounts and a slowdown in sales. In California, the Los Angeles mansion tax, which went into effect on April 1, has resulted in both a decrease in transactions and less demand for homes in the $5 and above category.
And in Manhattan, struggling properties on Billionaires’ Row are getting multimillion-dollar price cuts. At the Central Park Tower, the price of a high-floor unit originally listed for $175 million has been reduced by 15 percent, and the supertall’s triplex penthouse, first listed for a stratospheric $250 million, recently got a $55 million markdown. However, optimism remains strong in the ultra-luxury sector. Gary Barnett, the founder of Extell Development, the builder of Central Park Tower, recently told The Real Deal, “The original pricing on these units were headline prices. We have recently sold a significant amount of inventory at the top of the building and now want to get serious about selling these two showcase homes.”
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