According to Savills' data, a total of 526 residential properties valued at over £5 million were sold in London throughout the year, including both new and existing homes. Although this reflects a 13% decrease compared to 2022, it is only a 2.3% reduction when compared to 2021. This indicates a relative stability in the market, especially considering the global uncertainties caused by the ongoing pandemic.
In terms of sales value, the total sales for London's luxury property market in 2023 reached £5.7 billion. Properties valued at over £10 million contributed £3.2 billion to the sales, surpassing any year between 2012 and 2019. This suggests that the demand for high-value properties still exists, and investors maintain confidence in London's luxury real estate market.
Analysts from Savills point out that the continued interest from cash buyers and international buyers in prime London locations plays a crucial role in keeping the prices of high-value properties stable. These buyers show heightened interest in properties located in traditional prime postcodes such as Chelsea, Kensington, Belgravia, Mayfair, and Knightsbridge. These areas have consistently been popular regions in London's luxury property market, attracting attention from affluent buyers.
Another interesting trend is the increase in apartment sales. In 2023, apartment sales accounted for 43% of the total, reaching the highest level since 2012. This is mainly attributed to the return of international buyers who now prioritize design, decoration, and service quality over just floor area and private outdoor space. This trend reflects a shift in London's luxury real estate market, where buyers are placing more emphasis on details and quality.
Despite the upcoming elections, stable housing prices are expected in 2024. However, with the gradual global economic recovery and stable domestic political conditions, a growth of 3.5% in housing prices is anticipated in 2025, followed by a 6% increase in 2026. This indicates optimism among investors regarding the future of London's luxury property market.
