QIB UK and Savills Present London Prime Property Outlook Highlighting Long-Term Value
12/03/2026, Doha,Qatar
QIB UK, a subsidiary of Qatar Islamic Bank in Dohais working with renowned real estate consultancy Savills in order to inform potential investors from Qatar on the latest research about the London residential market, with a focus on prime properties.
Prime Central London to return to growth but caution remains
Prime Central London property values are forecast to increase by +8.1% over the next five years, according to Savills.
Values across London’s most rarefied postcodes fell by -4.8% last year, leaving prices 24.5% below their 2014 peak at the end of 2025.
Frances McDonald, director of research at Savills commented that the forecast increase in values is driven by a reduction in uncertainty. “The November Budget delivered a better-than-feared outcome for top-end buyers. The new High Value Council Tax Surcharge (or “Mansion Tax” as some have called it) is unlikely to have much of a direct impact on these markets, especially with much of the impact already priced in following falls to values in the lead up,” comments.
“Now, with greater clarity for buyers and sellers, we are seeing early signs that activity is beginning to pick up as buyers take advantage of more certainty and of where values sit.
Super prime transactions return to pre-pandemic levels
London’s £5 million-plus sales market hit a five-year low in 2025, says Savills. However, activity gained momentum in the final weeks of the year as buyers put budget uncertainty behind them, and as activity returns to a pre-pandemic pace.
“Since the November Budget we have not seen a rush of stock coming to the market – and the ‘better than feared’ result did lead to an uptick in activity over the last couple of weeks of the year, that has continued into 2026. A testament to the confidence in London’s long-term appeal,” comments Frances McDonald.
“Activity among best-in-class trophy assets picked up most significantly in the last three-months, underpinned by scarcity and continued confidence in London’s most prized postcodes. Price adjustments at the top end have also unlocked more demand, with many taking the view that prices are starting to stabilise and are taking advantage of the value on offer.”
Comprehensive whole market analysis (second hand and new build) by Savills reveals that there was a total of 412 £5 million-plus transactions in 2025, which is 11% fewer than 2024, as the market reacted to heightened uncertainty.
But activity in the last three months of the year increased on the quarter (7% increase Q4 vs Q3) amid post-Budget clarity. Q4 also recorded the highest number of £10 million-plus transactions of any quarter in the year.
Mayfair crowned as top super-prime market in 2025
Mayfair saw the highest proportion (12%) of £5 million-plus sales in 2025, followed by Chelsea (11%) and Kensington (10%). This is the first time that Mayfair has come out top, since Savills records began.
Liza-Jane Kelly, head of London residential at Savills, comments: “Mayfair remains to be the ultimate discretionary market, and the families who have owned here for generations continue to see it as irreplaceable.”
“Lifestyle factors continue to drive families from the Middle East, often seeking secondary residences for the next generation. At the same time, increased tax uncertainty in parts of the US, combined with continued currency advantages, has driven a notable uptick in American buyer activity compared with recent years.”
A shrinking new build pipeline
Looking forward, high value new homes will be in short supply. There are currently 500 new build homes worth over £5m in London which are either available to buy or will be available within the next five years.
With changes to planning permissions limiting the size of new homes in central boroughs, these schemes are likely to be the last of their kind to provide large lateral flats.
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