Competition from Dubai and concerns about the incoming UK Labour government has seen a movement of HNWI away from the London prime property market.
The data, from luxury specialists Beauchamp Estates, see sales in the English capital down in the first half of this year compared to the same period last year.
It found that between January to June 2024, there have been £731m worth of deals agreed – almost £100m less or a 12% drop on the £829m from 2023.
Beauchamp Estates claims that the decline in the combined value of the deals is because multi-millionaires and billionaires have been spending less overall in London prime property and buying smaller homes.
The agent warned that the UK capital faces rising competition from locations including Dubai, the French Riviera and Miami.
Beauchamp Estates highlight that residential property prices in Dubai have risen by 20% since 2020, and in 2023 the number of deals rose by almost 30%, and there were twice as many deals for homes valued over £15m compared to London.
London prime property could be heading for a drip in fortunes.
“The steady flow of £15m plus deals during the first half of 2024 shows that London remains an essential location for multi-millionaires and billionaires to buy and have a home as part of their global property portfolio. During the first six months of 2024, there has effectively been two billionaire buyer property deals per week in Central London, which is extremely positive.
“However, the overall spend and the size of homes being purchased in 2024 is down on 2023 and this shows that whilst there remains a sustained appetite amongst the world’s super rich for buying homes in the UK capital, the new Labour government needs to be mindful that too much taxation and regulation could make buyers choose to invest elsewhere. The new government needs to focus on keeping London as a highly attractive place to live, invest and do business.”
Gary Hersham, founding director of Beauchamp Estates
Dubai’s government has also implemented various measures to make the city more accessible.
These include tax-free income policies and numerous incentives for foreign investors, making Dubai not only an attractive place to live, but also a favourable environment for financial growth and stability.
The strategic location of Dubai, serving as a global business hub, further enhances its appeal by providing easy access to markets in Europe, Asia and Africa.
