Trending: Wealthy People flock to London to Rent and Buy Super Luxury Homes

Despite the general decline in London's real estate market, the ultra-luxury segment worth more than £5 million is still going strong.

Despite the general decline in London's real estate market, the ultra-luxury segment worth more than £5 million is still going strong. According to LonRes, the global real estate data network, home sales in affluent downtown fell by nearly 35% in April – a record low transaction. However, sales of homes valued at £5 million or more increased by 26.1%.

So, what is driving this surge in sales in the ultra-luxury home segment? One possible reason is increased demand from overseas buyers. With the pound continuing to weaken, London property prices have become more attractive for foreign buyers looking for a safe and secure investment. Additionally, the UK's relatively low property tax rates appeal to foreign investors.

Another reason could be that ultra-wealthy buyers are simply not as affected by economic uncertainty or political instability as others. They have the freedom to make big purchases and are not as easily deterred by market fluctuations.

Meanwhile, the rental price of super luxury houses in London remains high, with a 7.4% increase. However, the low supply has limited rental activity, with new rentals down 26.2% compared to April 2022. This shows that the luxury rental market is still a highly competitive space to be in.

In summary, while the London real estate market may be experiencing a general decline, the ultra-luxury home segment worth more than £5 million is bucking the trend. This could be attributed to a combination of increased demand from overseas buyers and the relative financial stability of the ultra-wealthy. However, the rental market remains highly competitive due to the limited supply of super luxury homes.