£5 million-plus residential sales in 2023 remain well above pre-pandemic levels
London’s £5 million-plus residential market remained strong in 2023, with a total of 526 sales of new build and second hand properties changing hands. While this is 13% lower than in 2022 (a record year), it is just 2.3% less than 2021, and higher than any other year since 2013.
These properties made a total value of £5.7 billion, of which sales in excess of £10 million made up £3.2 billion. This is higher than any total value achieved between 2012-2019.
With transactions holding relatively steady, this rarefied top end of the London market outperformed the wider UK market in 2023.
What are the trends behind this data?
We continue to see cash and international buyers playing a pivotal role across prime London, which has resulted in prices for higher value properties remaining steady over the course of the year.
Half of all sales in excess of £5 million took place in traditional prime postcodes of Chelsea (12%), Kensington, (11%) Belgravia (10%), Mayfair (8%) and Knightsbridge (7%). This rebalancing back in favour of the prime postcodes that traditionally dominated £5 million-plus sales pre-pandemic has been driven by the return of international travel for business and leisure, and the global wealthy once again looking to buy into the London lifestyle.
International buyers are often more interested in quality of design, finish and service, rather than larger floorplans and outdoor space, so demand is focused on best-in-class properties, particularly at the top end.
Significant investment into Belgravia, including an evolved retail and restaurant offering, has brought a younger demographic to the area. We expect to see Knightsbridge follow suit with the regeneration currently underway.
In light of the looming general election, values across prime central London are expected to remain flat this year, but we forecast price growth of 3.5% in 2025 and 6.0% in 2026 once the global economy picks up more significantly and domestic political instability subsides.