New research from CBRE reveals that London remains “by far” Europe’s most mature and expensive high-end residential market, outperforming other European wealth hubs in pricing, transaction trends, and property types.
New research from CBRE reveals that London remains “by far” Europe’s most mature and expensive high-end residential market, outperforming other European wealth hubs in pricing, transaction trends, and property types. Positioned alongside global luxury centres such as Monaco, New York, and Hong Kong, London continues to attract high-net-worth individuals (HNWIs) seeking premier residences.
According to CBRE’s analysis, the average price per square meter in London’s luxury market is around €30,000, significantly higher than Paris, where average prices are closer to €23,000 per square metre. Homes in London’s luxury market also tend to be larger than those in Paris, averaging 321 square metres compared to 282 in Paris. This pricing disparity, CBRE suggests, can be attributed to London’s high concentration of affluent residents, driven by its role as Europe’s financial centre and leader in industries such as media, entertainment, and sports.
London’s luxury market is characterised by properties under €7.5 million, which have made up 55% of transactions since 2014. Only 9% of transactions have exceeded the €15 million mark, illustrating a diverse buyer landscape. Kensington and Chelsea remain at the heart of the luxury market, with average transaction values of €10.8 million, closely followed by Westminster at €9.6 million. At the other end of the scale, the City of London and Islington saw average transaction values of €5.3 million and €5.7 million, respectively.
Interestingly, luxury transactions in the €20-50 million range saw the most notable increase, up by 198% between 2021 and 2022 compared to previous averages. The €10-15 million segment also saw substantial growth, rising by 137% in the same period. Reflecting London’s position as a global luxury hub, the average transaction price for high-end properties has climbed 20% from €8.4 million in 2018 to €10 million in 2023.
Although the average size of luxury homes purchased has slightly decreased—from 353 square metres in 2018 to 323 square meters today—London’s high-end market remains largely concentrated in the boroughs of Kensington, Chelsea, and Westminster, which together account for 77% of luxury transactions.
With a steady concentration of HNWIs and premier real estate, London’s luxury market shows resilience, attracting those drawn to the city’s distinctive culture, business opportunities, and lifestyle amenities. CBRE’s research highlights London’s enduring position as Europe’s leading destination for luxury living, with unique investment opportunities for those navigating this elite market.
Commenting, Arabella Roupell, Director of Winkworth South Kensington said, "There's no question the Royal Borough of Kensington and Chelsea has always been a haven for HNWIs. The stunning, period architecture and close proximity to London's business and entertainment hubs mean it will always draw in those wanting London-buzz with classic luxury. Unlike other parts of London that go in and out of favour, RBKC has remained a highly desirable area to live and own property since the 1700s. My office has been under the same ownership for 40 years and in that time we've seen just how resilient the PCL market is compared to other parts of the capital."
Sources: CBRE’s, Henley & Partners, HMRC, DVF, Brainbay, Primeresi & HMRC
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