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London is the most popular city in the world in 2020 for ultra-luxury residential property purchases of more than $10 million, according to research by consultancy Knight Frank, despite the pandemic and Brexit. The 201 purchases rose by 3% in the UK capital last year, while they plunged by 27% in Hong Kong and 48% in New York, both of which were ahead of London the previous year.
In total, transactions for these very high-end residences reached 3.7 billion dollars. The British capital even leads for the first time in five years in the $25 million-plus property segment.
Specifically, a third of all purchases in London, for homes over $10 million, were made by UK residents, an increase of 12%. Europeans have also been buying luxury property in large numbers due to the proximity of London, which has provided relatively easy access despite the health crisis.
The British capital is attractive because of property prices that have fallen in recent years and thanks to the weakness of the pound against the dollar and the euro.
“The market for very high-end homes in London has weathered the Brexit and even resisted the pandemic, confirming that the UK capital is the number one destination for the wealthiest,” says Liam Bailey, head of research at Knight Frank.
One of the landmark deals of 2020 was the purchase of a £42 million residence in Belgravia, an upmarket area of central London, by Indo-British steel magnate Sanjeev Gupta, according to the Financial Times.
The US market for luxury homes has been slow, as it often is in presidential election years and due to a long paralysis caused by Covid-19. But while New York took the brunt of it, seaside cities such as Miami and Los Angeles saw a jump in transactions.
The Knight Frank study also shows that transactions in the 12 major markets worldwide have fallen slightly (by 1%) over the past year, a very small decline given the overall health restrictions.
This was due to strong demand from buyers in their home countries who reassessed their needs during the pandemic.
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