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International Buyer Trends in Prime London. 24th October 2017


Over the last few years, there has been a noticeable amount of research based on sales and marketing inclinations of the prime and ultra-prime residential areas of London. Traditionally, the ultra-prime (or super-prime) residential sector refers to properties valued over £10 million – or in some other defnitions properties with valuation in excess of £2,000 psf (£21,528 psm) across London. In our view, the LUP market resides in its own class as it elicits additional characteristics which cannot be solely attributed on price. For example, traditional price-only de nitions would not include a one bedroom apartment in the ultra-exclusive One Hyde Park development, as its current valuation is well below the £10 million threshold. Quantitative examples such as the above are factored in our LUP market analysis. Based on our interactions with a representative sample of private clients, the LUP Market could be more accurately described as the stock of property which appeals to élite buyers, i.e. those demanding extraordinary properties in terms of location, quality and finesse.

 

Naturally, élite buyers fall under the UHNWIs and BIs bands with investable assets of at least £30 million, excluding personal assets and property such as primary residence, collectibles and consumer durables. It is also evident, that the majority of élite buyers in the LUP market are international buyers - a trend which is only set to increase as corroborated by established selling agents. According to Wealth X, 30% of all UHNWIs and BIs own at least one residence outside their primary business nation and predominantly choose Western Europe and North America as their main residential base. Consequently, a large percentage of élite buyers are not contented to a single home, but many around the world. These individuals are global citizens with property interests in multiple locations like NewYork, London,Dubai, Hong Kong, Monaco and Genève.

They also show interest in acquiring substantial properties in leisure locations such as Côte d'Azur, French & Swiss Alps, Caribbean and Phuket. For many élite buyers, their property buying decisions are influenced by factors such as having the opportunity to socialise with like-minded individuals and being in close proximity to private members’ establishments. Additionally, they strive to accommodate their global lifestyle preferences such as traveling in private jets and mega yachts, frequenting exclusive hotels, as well as cultivating their passions which typically include fine art, rare wine, vintage watches and antiques.