Billionaires from Middle East drive London property boom: The super-rich snap up capital’s luxury homes as they hunt for new boltholes abroad and shield cash from effects of Iran war
American and Middle Eastern buyers are driving a property boom in London after more than £1bn of super-premium homes were snapped up in the first half of 2026.
Analysis of property market data shows sales of £1.24bn were recorded in the capital between January and June; experts have noted a 79 percent annual increase, once driven by non-locals trying to protect their cash from the effects of the Iran war.
About 25 percent of buyers were from Gulf countries, according to Beauchamp Estates, which analyzed the data.
Middle Eastern buyers are seeking new havens abroad in case they are forced to withdraw from scenes like the one in February when Tehran began raining down hell on American allies, including Dubai.
And like Americans, who make up the other 30 percent of buyers of prime homes in London, they pay in cash; They often remortgage immediately to free up liquid assets so the home can be recorded as a loan for tax purposes.
Rosy Khalastchy of Beauchamp Estates, who analyzed the data, said personal safety concerns among Gulf citizens had led to a 15 per cent increase in investigations.
He said: ‘Recipients include Gulf nationals, Gulf-based UK and European expats, as well as Indian, Pakistani, Lebanese and other citizens living in the Middle East.
‘This has led to a significant increase in sales and letting deals in central London to Gulf-based families who have young children and want their families to have a secure base in the UK capital that they can use as needed.’
Middle Eastern millionaires and billionaires are driving a property boom in London: Dubai businessman Abbas Sajwani bought The Holme in Regent’s Park (pictured) for £195 million
Mr Sajwani, photographed with US President Donald Trump, is among Middle Eastern billionaires who have set up sanctuary in London. Trump also deports some Americans abroad
Real estate agents expect the proportion of sales to Middle Eastern billionaires to increase significantly in the second half of the year, as sales that began in the middle of the conflict in Iran are completed.
Many of those selling are former foreigners who changed their UK bases to move abroad after Rachel Reeves scrapped the status that allowed the super-rich to shield their foreign earnings from HMRC.
Others are British nationals who downsized or left London for the Home Counties.
In total, 34 super-premium homes worth at least £15 million changed hands in the first half of the year for an average of £36.5 million (almost double the average sale price three years ago), with buyers opting for mansions rather than apartments.
Savvy Gulf buyers are also buying new-build flats in bulk as investments or to rent, hedging bets that they will appreciate in value.
But market performance has been skewed by some seriously big deals, including what is thought to be the UK’s largest ever house sale.
Providence House in Chelsea was sold by businessman Nick Candy to Labor donor Suneil Setiya for £275 million earlier this year.
Other above-average transactions include the £195m sale of The Holme, a huge mansion in Regents Park, to Dubai property developer Abbas Sajwani.
Donald Trump’s father Hussain, nicknamed ‘Dubai’s Donald’, also wanted to buy a £55 million Knightsbridge mansion this year but lost out to a British buyer.
A penthouse overlooking Hyde Park at the Park Modern complex has reportedly been floged to Elon Musk collaborator Igor Babuschkin for £57 million – although he has since denied he was behind the purchase.
Beauchamp Estates says most of the sales in the Mayfair area are being made by Americans who disagree with President Donald Trump’s policies and are pouring their money into real estate and technology start-ups, especially artificial intelligence.
Belgravia was also a big winner; It has completed nine transactions in the last six months, compared to two transactions in the same period in 2025.
Both Gulf and US buyers are generally in their mid-30s to mid-50s with young children. Often, their new haven in London operates as a fourth or fifth home.
Abbas Sajwani’s father Hussain (pictured) also wanted to buy a property in Knightsbridge this year but lost out to a British buyer who paid £55 million
Gulf residents are thought to seize properties in London to stave off a hasty retreat if Iran attacks again, as it did in February (pictured)
The huge sums spent on prime properties in London are being distorted by some huge deals – including the £275m sale of Providence House by businessman Nick Candy
A penthouse apartment overlooking Hyde Park in the Park Modern complex (pictured) has reportedly been sold to AI businessman Igor Babuschkin – who later denied involvement
And the growing demand for ‘turnkey’ properties (those that are ready to move in immediately) shows that buyers want homes they can actually use, rather than buildings they can hold onto as investments.
Ms Khalastchy added: ‘Buyer demand is for detached family homes; buyers want to buy some of the property in London and keep it as a long-term investment and European city base.
‘The US economy and the booming AI/tech sector are generating significant wealth, but unease with Trump has helped fuel a 10 per cent increase in American buyers moving some of their money overseas towards property purchases in London.’
Elsewhere, there is a new row of billionaires in London: Hamilton Terrace in St John’s Wood has seen home sales of almost £100 million in the last 12 months alone, attracting buyers largely from India.
Estate agent Aston Chase, who has conducted a fortune survey in the area, says buyers are attracted by the competitively priced homes on the street: a relative difference of £5 million to £20 million for the budding billionaire.
