More contracts were signed throughout the first nine months of 2022 than in any year from 2015 to 2020.
According to a survey released by Savills on Tuesday, London’s luxury real estate market has had its most significant year on record due to the city’s appeal to wealthy homebuyers.
There were 461 house sales in the city between January and September for £5 million (US$5.73 million) or more. According to Savills, this is more sales than any entire year from 2015 through 2020 combined, and it’s the biggest for the first nine months of any year since the real estate brokerage began tracking the indicator in 2006.
Sales of significant assets drove the overall value of those 461 transactions to almost £4.8 billion, an increase of 31% compared to the same time the previous year.
Indeed, deals valued between £15 million and £20 million were up 84% in the first nine months of the year compared to the same time in 2021.
Many people who could not travel during the pandemic continue to be drawn by the appeal of one of the world’s leading cities, according to Jonathan Hewlett, head of London residential at Savills, quoted in a report. He was referring to the rising cost of living in the U.K., jumping interest rates, and the pound’s significant slip against the dollar.
He said that increased demand is coming from North American, Middle Eastern, and central Asian purchasers due to recent market turbulence.
Luxury homebuyers in London were most interested in purchasing properties in the city’s classic upmarket districts, which are concentrated in the city’s heart.
Regarding prime sales, 12.4% of all occurred in Chelsea because it is such a desirable neighborhood. A further 11.3% of purchases were made in Knightsbridge, followed by Kensington at 9.9%. The widespread trend of purchasers preferring London’s affluent suburbs for their larger houses and gardens has been reversed, with residents increasingly drawn to the city’s more central areas.
Mr. Hewlett said that the luxury sector of the market is more resilient to economic volatility but is still not immune. The sales volume and value in the last few months of this year may be affected by the “heat” that has been coming from the domestic buyer market in recent weeks.
