London Luxury Home Values Near Half-Price Real Decline Arabian Post

(MENAFN- The Arabian Post) clearfix"> Luxury homes in central London are approaching a 50% fall in inflation-adjusted value from their market peak, underlining the scale of a decade-long downturn that has reshaped one of the world's best-known high-end property markets.

Prime central London values are now about 26% below their 2014 peak in nominal terms, according to Savills, after falling another 2.5% during 2026 through its September assessment. Once the rise in consumer prices over the same period is taken into account, the loss in purchasing-power terms is close to half.

The real-terms calculation exposes a much steeper erosion than headline property prices suggest. A home worth £1 million at the 2014 peak would be worth roughly £740,000 at today's nominal market level on the Savills measure, while the original £1 million would need to have risen substantially merely to keep pace with inflation.

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