The weak pound since the Brexit vote has provided a significant financial advantage for foreign buyers, especially those from the Middle East and the United States.
According to data from luxury property estate agency Beauchamp Estates, the fluctuations in the pound’s value have led to a surge in high-end property sales to international buyers.
When the UK held the EU referendum in 2016, American buyers saw an immediate benefit from the exchange rate.
At that time, the strength of the US dollar against the pound meant that American buyers effectively received a 7% discount on property prices in the UK.
By 2024, this discount has increased to 18%, making London’s luxury property market even more attractive to US investors.
The exchange rate advantage is equally beneficial for buyers from the Middle East.
Since currencies like the Qatari and Saudi Riyal and UAE Dirham mirror the US dollar, these Gulf buyers have experienced a dramatic boost in their purchasing power, similar to that of American buyers.
US and Middle Eastern buyers ‘account for nearly 50% of all such property sales’
Beauchamp Estates reports that the combined share of US and Middle East buyers in the London super-prime property market (£20m-plus homes) has risen sharply.
These two groups now account for nearly 50% of all such property sales, up from 36% in 2023.
The survey found that American buyers currently represent 25% of all sales in this segment, the largest share by any foreign nationality. Middle Eastern buyers follow closely, accounting for 20% of these high-end property sales in London.
A spokesperson from Beauchamp Estates commented, “The weak pound has been a key factor in the increased presence of Middle Eastern and American buyers in London’s luxury property market. Their purchasing power has significantly expanded, contributing to their dominance in the super-prime sector.”
The most popular locations for US and Middle East buyers
American buyers tend to favour large family homes or newly refurbished apartments in prestigious areas such as Notting Hill, St John’s Wood (close to the American school), and Chelsea.
On the other hand, American billionaires often choose more extravagant properties, such as mansions, lavish pied-à-terres, or penthouses in Belgravia, Mayfair, St James’s, or Regent’s Park.
Notable American buyers include fashion mogul Tom Ford, who recently purchased a mansion in Chelsea for £80 million, and financier Ken Griffin, who owns properties in Belgravia and St James’s.
Todd Boehly, the co-owner of Chelsea Football Club, also calls Belgravia home.
In addition, Beauchamp Estates recently sold an £8 million penthouse in Mayfair to the American firm Pacaso and an £11.5 million duplex in Mayfair to an American family working in finance.
For Middle Eastern buyers, areas such as Mayfair, Belgravia, Knightsbridge, and the Hyde Park Estate remain the most popular locations.
“Gulf buyers love living near Hyde Park, particularly within walking distance of key retail streets in London, which are social hubs for Middle Eastern residents and visitors,” said Finch. “Mount Street, Duke Street in Mayfair, Edgware Road by Hyde Park, Motcomb Street, Elizabeth Street in Belgravia, and Basil Street and Brompton Road in Knightsbridge are the key spots where Middle Eastern residents come to socialise, enjoy coffee bars, and relax.”
These seven locations have become synonymous with luxury living for Middle Eastern buyers, who frequent the area to meet friends, relax, and enjoy the finest cafes and food establishments.
‘The share of UK buyers fell from 12% to 10%’ in the £20m + market
Beauchamp Estates also observed a decline in the proportion of £20m-plus sales to buyers from the UK, Eastern Europe, Western Europe, and India/South Asia between 2023 and 2024.
Specifically, the share of UK buyers fell from 12% to 10%, Eastern European buyers dropped from 13% to 8%, and Indian/South Asian buyers from 23% to 20%.
However, buyers from China and Hong Kong have seen an increase in numbers, growing from 10% to 12% of the total market share.
Paul Finch, Director and Head of New Homes at Beauchamp Estates, commented, “Alongside the younger generation of buyers from the Middle East, we are seeing an increasing number of buyers aged between 40 and 60. These buyers tend to spend between £10m and £30m on luxury properties, including houses, villas, and large apartments in central London.”