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London’s platinum triangle is home to booming luxury property markets, which attract wealthy buyers from overseas as well as UK-based investors. An exclusive area, which spans Knightsbridge, Mayfair and Belgravia, this property hot spot is one of London’s most desirable locations. Home to luxury residential properties valued at millions of pounds, buyers can take advantage of a prime central location, prestigious, in-demand postcodes and unparalleled rental investment opportunities. In this informative guide, we’ll provide an in-depth exploration of investing in luxury residential properties in the heart of London’s famous Platinum Triangle.
An overview of investing in London’s Platinum Triangle
Interest in the capital’s residential real estate soared in 2023, with foreign buyers pushing prices for prime Central London investment properties up significantly. One of the major players on the world property stage, the Platinum Triangle boasts luxury developments and mansions priced in the highest brackets. Ultra prime sales among multi-millionaire and billionaire buyers grew by 10% in 2023, with the average value of property sold soaring by 25%.
Who invests in luxury property in the Platinum Triangle?
Beauchamp Estates data revealed that buyers from just four countries spearheaded the increase in multi-million pound and major giga prime deals in London. Key countries include:
- America
- Saudi Arabia
- United Arab Emirates
- China
Other key acquirers include Nigerian buyers and Hong Kong buyers.
Beauchamp Estates estimate that 60% of property sales in Prime Central London for luxury properties valued at over £15 million in 2023 involved American buyers, Chinese buyers and investors from Saudi Arabia and the UAE. The remaining 40% of luxury homes in this price bracket were snapped up by buyers from India, Israel and Nigeria.
Investment opportunities for wealthy buyers
The busiest sales period for prime property deals in London in 2023 was March to October followed by October to December. Cash purchases accounted for a significant chunk (70%) of sales of elite properties priced at over £15 million. This represents an increase of 25% since 2021. Foreign investors from a handful of key nations that symbolise global wealth have generated huge cash reserves due to increasing gas prices, booming domestic property markets and buoyant oil markets.
Beauchamp Estates expects prices for houses worth over £15 million to rise by 1% and the volume of prime property deals to increase by 10% in 2024.
Where are investors putting their money?
In house deals data shows that American and Middle East buyers focused on London’s Platinum Triangle, Knightsbridge, Mayfair and Belgravia. These three addresses dominate ultra prime sales. In 2023, annual billionaire buyers data suggests there was a billion pound property sold every week in London. Mayfair, London attracts attention for multiple reasons. Mayfair and nearby Belgravia and Knightsbridge are synonymous with luxury living with newly built apartments, historic townhouses and mansions boasting prime locations in Central London in addition to perks and features, including swimming pool, concierge security and proximity to transport links, cultural landmarks, exclusive stores in Bond Street, Regent Street and Oxford Street and green spaces, including Regent’s Park and Hyde Park. Hotspots include Grosvenor Square, Park Lane and Brook Street.
Knightsbridge, which is famed for its high-end shops and boutiques, is popular among mainland Chinese buyers, Hong Kong and Singapore buyers. St John’s Wood in North West London is another sought-after location, particularly among Hong Kong and Chinese nationals and Nigerian buyers.
Why is London’s Platinum Triangle so lucrative?
There are several reasons why interest in London’s Platinum Triangle has increased among foreign investors. These include:
- Huge cash reserves: Investment from five key countries in the Middle East, Asia and North America can be linked to buoyant gas and oil prices.
- Security: The steady demand for prime real estate in London’s most sought-after locations makes it a proven safe haven for international investors.
- Accessible data: Investors have access to a vast data set, which covers all aspects of property sales information, including unit sales, rental market opportunities and market growth. Investors can benefit from analysing deals data, accessing local market intelligence and researching opportunities to spot the most lucrative deals.
- Value for money: A significant decline in the strength of the pound against some other currencies and changes in bank lending and interest rates means that wealthy investors can secure excellent value for money when buying in prestigious parts of London. Prime property deals are viewed as a stable asset class by many investors.
- Buy to flip opportunities: London’s rental investment market is booming, offering investors opportunities to maximise profits through buying to flip or rent. Purchasing houses in a prime London borough that boasts sought-after locations with easy access to the likes of Regent’s Park, St John’s Wood, Park Lane, Regent Street and Notting Hill, maximises the chances of finding buyers or tenants quickly.
- Competition: Rising competition provided an uptick in property sales and values in the Platinum Triangle in 2023, which bucked trends in other parts of the UK capital. According to data from the Financial Times, average prices in Knightsbridge increased by 3.3% in 2022/2023 due to rising competition among international investors. Across London, prices fell by 0.8%.
London’s thriving Platinum Triangle property market is attracting interest from wealthy investors across the US, Africa, Middle East and Asia. As prices rise and competition for prime Central London real estate intensifies, purchasing houses in sought-after parts of the city has become increasingly lucrative.
For more information about investing in London’s most exclusive areas or to view properties, contact Beauchamp Estates.
