Douglas Elliman|Knight Frank: U.S. Buyers in London’s Kensington at 10-Year High

According to the latest research by Douglas Elliman and Knight Frank , buyers from North America purchasing property in Kensington, London, hit a ten-year high in 2023. Overall, American buyers made up 5.4% of exchanges across all property transactions in London’s most prestigious postcodes in the 12 months to September 2023, with St John’s Wood and Belgravia forming part of a trio of the most popular areas in Prime Central London (PCL) for North American buyers. American buyers were involved in 2% of exchanges on average over the last ten years in PCL – demonstrating a considerable uptick. This dominance has made US buyers the largest group of purchasers by nationality, other than British, in the Kensington market. Americans made up 10% of exchanges in Kensington in the 12 months to September 2023, compared with 3.6% two years earlier. Indian (5.9%) and Italian buyers (4%) were the next most common buyers by nationality. American buyers in Kensington include executives looking to buy a family home having previously rented as they split their time between the US and UK, as well as investors making the most of the strong dollar against sterling. The last time buyers from North America comprised a higher proportion of sales in Kensington was in 2013, the firm says. “The return of international travel, the prevalence of cash sales and the fact prices were relatively flat during the pandemic have all supported activity in PCL this year,” said Tom Bill, head of UK Residential Research at Knight Frank. “US buyers have a long association with Kensington, but have been absent from the market in significant numbers for some time,” said Tom Rundall, partner, Prime Central London Developments. With the currency play in their favour and other domestic matters acting as a push factor, London and in particular Kensington, is benefiting from this renewed interest as US buyers seek out the very best homes in the capital close to parks, good schools and within easy reach of the west end.” “We see this same trend at Douglas Elliman, where the buyers that our agents are referring to their Knight Frank counterparts are clearly attracted to Kensington,” said Scott Durkin, President and Chief Executive Officer of Douglas Elliman Realty. “The park, the shops and the restaurants are both distinctly British and have always been very familiar to U.S. citizens.”  Holland Park Gate , one of London’s newest prime residential developments, has attracted significant interest from US buyers since sales began in early summer 2022. Located on a corner of High Street Kensington, Holland Park Gate is a mixed-use development comprising 71 apartments with one, two, three, and four bedrooms. Once an Art Deco cinema, the building’s Portland stone façade, built in the Neo-Grecian style complete with a recessed entrance that references a stage, has been meticulously resorted to its former glory by British architectural firm Squire and Partners. The developer, Lodha UK, has just unveiled the scheme’s penthouse, which is being offered ‘shell and core’ for a buyer to come in and make it their own or with the option to be designed and fitted out by Studio Lodha. The 5,500 sqft property sits atop the sixth and seventh floors of the building and features a 2,000 sqft outdoor terrace that wraps the entirety of the sixth floor. Floor-to-ceiling windows have been seamlessly designed to flow from the indoor to the outdoor, capturing views of Holland Park and west London at every corner, allowing residents to enjoy outdoor living throughout the year. Knight Frank is seeking offers in excess of £32,000,000 for the penthouse and expects strong interest to come from the North American market. “Since its launch in April 2022, Holland Park Gate has experienced remarkable success,” said Tom Clabburn, Sales Director at Lodha UK. “With over 65% of the initial release already sold, we have continued to see strong interest following a busy summer in 2023. “Many American buyers relocate to London with their families, and the location of Holland Park Gate has particularly appealed to those purchasers who want to be close to the excellent independent schools that lie within a fifteen minute drive of the development. The 54-acre Holland Park is the centre of gravity for many American communities in London, and it is just as easy to get out of London to Heathrow from here as it is to get into the West End or the City. “Holland Park Gate is equipped with modern air cooling systems, something that less than 1% of all London homes benefit from, and as London and other cities globally continue to experiences an increasing number of very hot days each summer, cooling has become a prerequisite for many American buyers. “Holland Park Gate’s array of lifestyle amenities, such as a private gym, spa, 25m swimming pool and meeting rooms, is also meeting the desire from American buyers for greater lifestyle convenience.”