A post-pandemic surge of super-prime real estate deals has left the UK capital playing catch-up, according to a new report from Knight Frank.
(Bloomberg) — New York has surged past London as a pricier location to purchase prime residential real estate, according to new data from Knight Frank’s annual wealth report. In 2022, $1 million bought 33 square meters (355 square feet) of prime property in New York and 34 in the the UK’s capital city—a change from 2021, when London was the more expensive location.
“The strong dollar had an influence and boosted New York’s position, but prime prices in New York were up 2.7% last year and 1.5% in London, so we’re seeing slightly slower growth in London,” says Kate Everett-Allen, global head of residential research at Knight Frank, who adds that properties in both markets are attractive to ultrahigh net worth buyers as an inflation hedge.
“The volatility in other asset classes like equities and crypto are highlighting the appeal of prime property, especially in safe locations like London and New York,” she says.
Monaco kept its title as the most expensive residential market, with $1 million bringing buyers just 17 square meters, according to the report. Hong Kong followed with 21 square meters, with New York coming in third. Some of the cheapest cities highlighted in the report were Sâo Paulo, at 231 square meters, and Cape Town, at 218 square meters.
When it comes to aggregate super prime sales of $10 million or more, New York, Los Angeles and London lead the pack, with New York topping the list. The super prime market enjoyed a record-setting year in 2021, with 2,076 sales above $10 million transacted. In 2022, sales in that category slumped to just 1,392 across the 10 markets included in the report. Still, they were 49% higher than in 2019.
“Investors want to increase their exposure to the dollar, and want a foothold within the US, especially with the economic headwinds we’re seeing,” says Everett-Allen.Read More: Here Are 2022’s 10 Most Expensive NYC Residential Sales
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