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In the interview, Gary Hersham, the founder of Beauchamp Estates, discusses the state of London's super prime property market. He mentions that sales have been strong, especially in Mayfair, with Grosvenor Square being a hot spot for mansion purchases by Indian and Middle Eastern buyers. Europeans and Americans, on the other hand, are more inclined to purchase serviced apartments, attracted by the convenience and amenities they provide.
Gary highlights the grand reception rooms as a new unique feature in the market. He also mentions the most expensive rental was 85,000 pounds a week for one and a half years, and wealthy renters usually search for properties while their permanent homes are being renovated. When asked about new wealth coming into London recently, he stated that no nationality stands out more than others at the moment.
Gary Hersham, the founder of Beauchamp estates, is a true property specialist who has dedicated nearly forty years to building a reputation as a Major player in the super prime and prime central London residential property market. With exceptional client relationships and a passion for the industry, Gary’s expertise extends beyond residential properties, and he has extensive knowledge of the commercial and development markets.
Interviewer - Farnaz Fazaipour | Property Investment & Ownership
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Intro 0:01
Welcome to the London Property podcast, your go to source for navigating the complex and ever changing London real estate market. Our digital marketplace provides informative and educational content from industry leaders, through podcasts and videos. We cover various aspects of the real estate experience, including buying and selling finance, law, tax construction, design, and more. Join us as we delve into the latest trends and developments in the market and gain valuable insights from our panel of experts.
Farnaz Fazaipour 0:36
Hello, and welcome to London Property home of super prime. We are very excited to welcome Gary Hersham back to the show today. Welcome.
Gary Hersham 0:43
Thank you very much indeed.
Farnaz Fazaipour 0:45
So Gary, we're going to keep it brief because I know you've got back to back appointments, and you were 45 minutes late for us. So tell me what's happening in the Super prime property market over 20 million?
Gary Hersham 0:56
Well, I have to say in the last three months sales have been amazing. We've we sold a house for 48 and a half million in December, a flat as far as I recollect for 35 or 35 and a half million into Mayfair, in December, various other things in the course of January and February. And we're marketing two of the finest homes in London, where we have nonstop visits. So I think the top end of the market is pretty good nowadays.
Farnaz Fazaipour 1:29
And where would you say it's most happening in the areas that you cover?
Gary Hersham 1:33
It seems to me that Mayfair seems to have picked up a lot. They've been a lot of sales in the Mayfair area recently, particularly in Grosvenor Square. I see lots of sales taking place in northwest London, particularly in St. John's Wood and Avenue Road. And of course, there have been some wonderful sales in Cadogan Square, in the peninsula, and in Knightsbridge and Belgravia.
Farnaz Fazaipour 1:57
So who who's buying these mega mansions because you know, there was a time where you could buy these mansions, never use them, keep them empty, come 10 days a year and not have to be subjected to inheritance tax.
Gary Hersham 2:10
And your question is who's living in these mansions? Well, your first question didn't refer to mansions to refer to what's going on in the prime end of the market over 15 million. So I included flats as well as houses. But if you're specific about mansions, then you're getting mainly Indians and Middle Eastern purchasing the mansions, as you put it. And having said that apartments, particularly those apartments that are serviced by hotel operators, such as The Peninsula, such as 20 Grosvenor Square, are being bought by either Europeans or Americans.
Farnaz Fazaipour 2:47
So that is more lifestyle living where you don't have to deal with any details?
Gary Hersham 2:52
Is it more lifestyle living? Or is it more comfort? Is more comfort than lifestyle living, where people have that car car service, the facilities, the building, the swimming pool, the complexes, the restaurants in the hotel, the ability to have your apartment cleaned and serviced by the hotel. That's what people are liking, very much to do.
Farnaz Fazaipour 3:13
And out of all these new developments that have come up over the last 10 years, like the ones you mentioned, and the old war office and so on, what are the really unique features that you've seen? That is really new to market? You know, because we've all gotten used to having gyms and pools and swimming pools, but is there anything that's kind of really turns your head and you think, wow, someone really got creative here.
Gary Hersham 3:37
In terms ofcreativity, what I think is slightly different, not very different, but slightly different from the past, is that they give you reception lobby areas that you didn't have beforehand. So if you go into The Peninsula, you go into 20 Grosvenor Square, or you go into No. 1 Grosvenor Square, you will have a set a proper reception room where you can sit where guests can sit and wait or private meeting rooms. If you go to and into Knightsbridge for example, it barely has that, it barely has that. If you go into No. 1 Hyde Park, well, you have that too, but it's nowhere near as grand, and nowhere near as beautiful as as the new buildings that are coming up today.
Farnaz Fazaipour 4:24
So it's sort of taking co-living to super-duper heights.
Gary Hersham 4:28
If you want to call it co-living, I suppose you could, but really what it is is a very grand hotel lobby.
Farnaz Fazaipour 4:35
Okay. So what would you say is the biggest deal you've done in the last six months?
Gary Hersham 4:40
No comment.
Farnaz Fazaipour 4:41
No comment. And what about the most expensive rentals you've done?
Gary Hersham 4:45
Most Expensive rental we've done as 85,000 pounds a week for one and a half years. And we're in the process of doing another rental where the rent will be on a smaller house 2 million pounds for the year.
Farnaz Fazaipour 4:58
Wow. And what kind of people renting these houses, what are they here for?
Gary Hersham 5:01
Very rich people renting these houses.
Farnaz Fazaipour 5:03
Obviously, but what are they here for? What are they doing? They're working? Is it school-related? What is it?
Gary Hersham 5:08
It's either related to a property search. In other words, I haven't found my home, but I want to move into something straight away and are continually looking, or I have found my home, it's not ready yet, I'm modernising it. I need a house for a year or two.
Farnaz Fazaipour 5:23
And are you seeing any new wealth coming is? Are there any areas in the world where you seeing traffic that we haven't had before?
Gary Hersham 5:31
I haven't seen any new traffic recently. And of course, you've got your unions, the Chinese, the Americans, some South Americans coming over. But there's not been what we were used to every year, an influx of, one once upon a time, it was Israelis, one once upon a time Scandinavians. And other time, it was Russians, and other times it was Nigerians. I'm not seeing any nationality, sticking his neck out above the parapet more than anybody else.
Farnaz Fazaipour 6:01
And talking about Russians. You know, we're, we're seeing things happen in the marketplace where properties are being seized and coming onto the market. Are you finding that this whole sort of KYC element is having an impact on people's ability to hold on to their real estate when there's political problems going on?
Gary Hersham 6:23
As yet no, in answer to your question as yet no.
Farnaz Fazaipour 6:27
And what is happening with the Ukrainian and Russian investors in in London, nothing?
Gary Hersham 6:33
There are very few Russian investors or buyers in London, as you're well aware, Ukrainian seem to have other things close to the heart they're dealing with at the moment, rather than buying in London.
Farnaz Fazaipour 6:47
I didn't really mean the buying side meant the ones who already invested here. Are they having any problems?
Gary Hersham 6:55
I don't see any problems with Ukrainians who invest here. There are no sanctions, and there are no sanctioned Ukrainians, as far as Russian sanctions are concerned, you can't touch their assets, and they can't touch their assets. So we've seen very little on the Russian front.
Farnaz Fazaipour 7:10
Right. But I mean, what I'm trying to get at is with the Russians, for example, if they're sanctioned, they're sanctioned as a nation or the sanctions specifically?
Gary Hersham 7:19
Russians are sanctioned as individuals. But individual and his and his immediate family can be sanctioned. But you don't have a nation being sanctioned,
Farnaz Fazaipour 7:29
No, I'm not talking about it that way. I'm saying like, you know, I know that some some
Gary Hersham 7:33
Is there a bad taste in the mouth of Russians. And is there a bad taste in the mouth of English professionals? In terms of wanting to deal with Russians? Yes, there is.
Farnaz Fazaipour 7:41
Yes, there is. I mean, I've heard of some big corporates actually saying don't deal with any Russians, don't deal with any Ukrainians, which is quite blanket approach. So I just wonder, you know, what did these people do if they've got houses that have mortgages...
Gary Hersham 7:53
They have great difficulties
Farnaz Fazaipour 7:54
They can't do anything, right? So it could be a time where some of these will be taken away by the banks.
Gary Hersham 8:01
That's entirely possible.
Farnaz Fazaipour 8:03
Okay. Anything else you want to share with us?
Gary Hersham 8:05
I'm delighted to be on your show. I'm delighted to be interviewed by you. You and I have been very good friends for many years. I hope it continues for a long time. Please come back whenever you want to. Thank you very much indeed, I just want to let you know that the London Property platform has solutions to almost everything. Please feel free to ask your questions.
Outro 8:28
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