Despite international travel restrictions, demand for London real estate has continued to build from around the world. The number of new prospective super-prime buyers was 150 percent higher in May 2021 than it was in January 2020, said Knight Frank.
However, over the same period, the number of new property listings in the price bracket fell by 25 percent as owners hesitated against the backdrop of the pandemic.
Rising Middle East sales
Knight Frank’s data highlights that 16 percent of all sales to overseas buyers in the first three months of 2021 came from the Middle East, up from less than 10 percent in the second and third quarters of last year.
GCC buyers are currently ranked third most prominent in the UK, only surpassed by buyers from Asia (18 percent) and Europe (59 percent), the data shows.
Despite early signs of a recovery, the firm says Middle Eastern investment is still some way off pre-pandemic levels, yet it expects activity to pick up further as international travel restrictions ease.
Large houses and flats in demand
Gulf-based buyers are viewing larger flats and houses with gardens and outdoor space, said Faun. They are showing interest in the traditional GCC investment hotspots, such as central London’s Knightsbridge, Mayfair and Kensington, as well St Johns Wood in the north west, and some parts of the nearby leafy Surrey.
Average super-prime prices increased 0.6 percent in the year to May, which was the first rise in more than three years.
Where are the top super-prime London hot spots?
The highest percentage of super-prime exchanges in the 12 months to April took place in Kensington (18.6 percent)
The joint top locations in the previous 12 months were Knightsbridge and Mayfair (17.4 percent)
Notting Hill has also grown in popularity, recording 10.5 percent of all super-prime deals over the last year, up from 5.4 percent in the previous 12-month period