London’s Luxury Lettings Market Doubles – Why Middle Eastern Investors Are Turning to the UK Capital

The first half of 2025 has seen a significant surge in London’s luxury lettings market, with demand for high-end properties more than doubling compared to last year. According to Beauchamp Estates’ Millionaires Lettings in London Survey, rental agreements for homes priced above £1,000 per week have increased by 154% year-on-year, generating over £82.8 million in rental income between January and June.

This sharp rise sends a clear signal to global investors: London remains one of the world’s most resilient and attractive property markets.

Prime Central London – Where the World Wants to Live

Between Mayfair, Marylebone, Belgravia, Knightsbridge, and Notting Hill, demand for premium properties has outpaced supply. These London luxury property investment areas made up the majority of deals in 2025, reinforcing their position as some of the most desirable addresses globally.

For the London luxury lettings market, houses, in particular, have performed strongly, with international families willing to pay a premium for space and privacy. In the first half of the year, long-term house rentals achieved an average of £2,679 per week, while short-term luxury houses commanded over £6,000 per week. Apartments have also seen robust returns, averaging £1,842 per week for long-term lets.

The Middle Eastern Connection

A major driver of this growth has been the rise in demand from Middle Eastern property investors and tenants, especially from Saudi Arabia, the UAE, and Qatar. Many are committing to both long-term leases and high-value short-term rentals during the spring and summer.

London continues to attract Middle Eastern property investors and families for its combination of world-class education, lifestyle, and investment security. Popular choices for Gulf tenants include Mayfair, Knightsbridge, Belgravia, and St John’s Wood – all synonymous with prestige and connectivity.

Unlike 2024, when many wealthy Gulf families spent their summers elsewhere in Europe, this year has marked a definite return to London. This further solidifies London's luxury property investment as the preferred international base for those seeking security, culture, and global business connectivity.

Why London Still Leads for Investors

For investors, the doubling of the London luxury lettings market underscores city’s strength as both a lifestyle destination and a financial centre. With high demand, limited stock, and rising premiums, luxury property in Prime Central London offers strong, reliable yields as well as long-term capital appreciation.

Importantly, the report notes that both the luxury lettings and sales markets are being driven by US and Gulf buyers, who now account for half of all transactions above £15 million. This convergence of international demand makes London a uniquely liquid and stable property market – an increasingly rare quality on the global stage.

Magnate Assets Perspective

At Magnate Assets, we see this as further evidence that London remains the ultimate safe-haven market for Middle Eastern property investors. Whether through rental yields, short-term summer lets, or capital appreciation, opportunities in Prime Central London continue to outperform.

For investors seeking a base in one of the world’s most influential cities, or those looking to secure high-performing assets with lasting global prestige, the London luxury property investment sector is unrivalled.

Summary

• Luxury lettings in London are up 154% in 2025 vs 2024.
• £82.8 million in rental income generated in six months.
• Gulf investors and families are a leading force in demand.
• Prime areas such as Mayfair, Knightsbridge, Belgravia, and Notting Hill are driving the market.
• London is not just a global city – it is the property market of choice for Middle Eastern investors.