London’s luxury property market got a hefty boost in 2024 as high-flying buyers from Saudi Arabia, Qatar, and the UAE, armed with dollar-pegged currencies, poured millions into the capital’s poshest pads.
An exclusive analysis reveals these Gulf state tycoons shelled out an average of £87.27 million ($112.45 million) each—up 24% from £70.46 million ($90.79 million) in 2023—snapping up homes at bargain prices as the super-prime sector stumbled.
But whispers of a retreat are growing, with looming Labour taxes threatening to sour the deal.
Al Rayan Bank’s survey of 150 Gulf millionaires, each worth at least $13 million, found 33% invested in London last year, outpacing Miami (23%), New York (21%), Paris (19%), and Los Angeles (19%).
“The key driver of this is the exchange rate advantage that Americans and Middle East buyers benefit from, using dollars to buy homes,” explains Paul Finch of Beauchamp Estates.
“In 2016 American buyers effectively benefited from a 7 per cent price discount due to the strength of the US dollar against the pound and this has grown to an 18 per cent discount.” He adds, “The exchange rate benefit is similar for Middle East buyers, since the Qatari and Saudi riyal and UAE dirham shadow the US dollar, so Gulf buyers have also seen their buying power dramatically increase due to exchange rate shifts.”
The spree’s been a lifeline for London’s top-end market, where just 40 homes over £15 million sold in 2024—down from 54 in 2023—per Beauchamp’s tally.
Gulf buyers nabbed 20% of these super-prime deals (up from 18%), trailing US buyers at 25%.
Big-ticket buys included a £26.25 million flat on Old Park Lane, a £29.95 million Lord Byron mansion in Mayfair (now under offer to a Saudi after a Qatari exit), and an £18.5 million Knightsbridge pile for the Bin Dawood clan.
An Abu Dhabi businessman splashed £30.45 million on a Greybrook House penthouse plus staff quarters.
“This is one of the best buying opportunities of UK real estate that I have seen in two decades,” says Daniel Daggers of DDRE Global, crediting the dollar’s muscle—£800,000 now bags 34 square metres in London, up 43% from a decade ago.
Yet, the party might be winding down.
Al Rayan’s 2025 outlook sees London slip from the top five, with Hong Kong (29%), Monaco (27%), and Tokyo (26%) leading, and just 21% eyeing the capital. Maisam Fazal of Al Rayan pins it on tax hikes:
“However, the new UK government and revenue-raising policies impacting property investors … have no doubt informed investors’ decision-making, hence London’s position dropping.”
The non-dom status axe next month, October’s 2% stamp duty jump for second homes (pushing foreign buyer costs towards 19%), and fears of a capital gains tax rise in the spring statement are spooking the Gulf crowd.
Still, 95% see the UK as a solid bet, pledging $92 million each over five years—up from $69.14 million.
“London’s attraction for the Middle Eastern rich was turbocharged by business interests and … [remains] a resilient business opportunity,” Fazal insists.