How Billionaires Invest - bigger homes but lower overall spend

Billionaire investors are buying even larger, more expensive and more luxurious ultra-prime homes in London during 2023 a new wealth survey has found.

But the first half of 2023 saw less spent in this ultra prime sector than in the same period last year.

These purchases in London are being driven by super-rich American, European, Indian, Malaysian and Chinese buyers says the new survey by high end agency Beauchamp Estates .

The firm has looked at sales of luxury residential properties valued over £15m between January and May 2023, compared to the same period in 2022, and has analysed its own sales data and that of London consultancy LonRes.

Beauchamp says it’s been a busy start to the year with £340m in deals over £15m between January and May 2023.

This is down on the £404m of £15m-plus deals agreed in 2022 but the firm insists there remains a sustained and healthy appetite amongst the world’s super rich for buying trophy homes in the UK capital.

And the size and value of luxury London homes being purchased, including houses, mansions and apartments, is significantly up on 2022.

The average size of £15m-plus house being purchased last year was 7,000 square feet but in the same period in 2023 the houses being purchased average 11,200 square feet.

Likewise the average size of apartment and penthouse being acquired has also risen, up from 4,844 square feet in the first half of last year to 5,232 this year.

Last year the majority were buying London homes that were their second, third, fourth or fifth property, not their primary residence - this year more are being purchased for buyers’ primary use.

The average £ per square foot value being achieved on these ultra-prime deals in the first half of 2023 is just over £3,100 per square foot, virtually unchanged from 2022.

Finally the gradual return of buyers from Asia marks the start of a return to normal international trading patterns following the disruption to global travel and commerce caused by the COVID-19 pandemic.

Beau champ founder Gary Hersham says: “During the first five months of 2023 there has effectively been two billionaire buyer property deals per month in Central London. 

“The size and value of luxury London homes being purchased is significantly up on 2022, the houses being acquired currently average 11,200 square feet, almost double the size of the properties bought last year. There remains a sustained and healthy appetite amongst the world’s super rich for buying trophy homes in the UK capital.” 

Marcus O’Brien, Head of Beauchamp Estates Private Office, adds: “The UK economy is expected to grow steadily from 2024 onwards and over the next five years most analysts anticipate Prime London average prices to rise by around 20 per cent.

“Compare this projected growth against global stock markets, which are volatile, and investments in the new tech and digital company sectors, where returns have been mixed. The price of gold has also risen more modestly in the last few years. 

“This is why London real estate continues to attract the global super-rich.”