More money has been spent on £10m-plus properties this year than in 2019, new data from Knight Frank has revealed.
Analysis by the real estate specialist showed there were a total of 56 super-prime deals in the first eight months of this year, compared to 57 last year, although a total spend of £1.13bn in the first eight months of 2020 was 16% higher than the figure of £977.5m recorded last year.
Knight Frank suggested the COVID-19 pandemic has “impaired the ability rather than the desire of buyers” to transact in the super-prime market in the UK.
The analysis also highlighted that the year had begun strongly following a general election result that marked a turning point after several years of Brexit-related political volatility. There were 30 transactions above £10m in the first three months of 2020 which compared to 18 in 2019, and 22 in 2018.
“The key motivators of capital preservation, the UK education system and cheap debt are unchanged,” said Knight Frank global head of prime sales, Paddy Dring.
“The trend for more outdoor space has benefitted suburban and country markets but buyers are retaining a London investment for the long-term. Prices are robust with single-digit percentage discounts but no more.”
Head of prime central London developments, Rupert des Forges, suggested the £10m-plus price bracket has been the strongest part of the new-build market since the property market reopened in May.
“We have transacted half a dozen super-prime deals since mid-May,” he said. “Debt is so cheap and there still appears to be a lot of cash in circulation due to QE. Some individuals have made money during these volatile times.”
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