a record number of mansions were sold in London in 2022, suggesting that the capital’s super-wealthy shrugged off an economic downturn to get their hands on luxury real estate with a seven-figure price tag.
More than 600 homes worth more than £5 million were sold in the capital last year, the highest property move Savills has seen since registration began in 2006.
Frances McDonald, research analyst at Savills, said: “High value properties continue to outperform across the board as unique quality properties continue to be sought after by buyers both at home and abroad.
“These markets are driven more by flows of global equities and, while not immune, are less dictated by domestic economic volatility.”
More than 60% of second-hand sales took place in traditional first-class hotspots in central London, led by Chelsea (12.6%), Kensington (10.3%) and Knightsbridge (9.0%), Savills data showed.
But the £5m+ price tag is now increasingly reaching prime remote locations – including Clapham, Battersea, Bayswater and Putney – mainly driven by wider regeneration and redevelopment, the opening of new Tube and Crossrail stations and demand for larger family homes. homes with more space inside and outside the house.
More than 50 London neighborhoods saw activity in the over £5 million price range in 2022, and the range of this price tag is likely to increase further in 2023.
The boom in luxury property sales comes amid a slowdown in house price growth in the capital in general. The average home in London will increase in value by 2.9% in 2022, according to the Halifax House Price Index, well behind figures from the East of England (+5.5%), West Midlands (+9.1%) and Wales (+6.1%)
McDonald added that the luxury real estate market showed some signs of weakening towards the end of last year, but remained well above pre-pandemic levels.