A significant rise in the number of homes priced above £100 million in Prime Central London has helped create a new giga-prime market catering exclusively to billionaire buyers says Wetherell, the ultra-prime estate agent.

Wetherell says that there are now around 20 homes in Prime Central London either built or in the development pipeline which have a value of around or over £100 million. These £100 million properties are located in just a few ultra-prime addresses which include Mayfair, Belgravia, Knightsbridge, Regent’s Park and Hampstead.

One of the examples is 2-8a Rutland Gate, which was bought last year. A new planning application was submitted in February to refurbish and upgrade the mansion to the new designs by Squire & Partners. If it was remodelled and expanded in size, could be worth anything from £310 million to over £500 million, either way, it is the most valuable private home in London.

Peter Wetherell, Founder & Chairman of Wetherell commented: “We have seen the establishment of a Prime London market, a super-prime market, and now we are seeing the emergence of a giga-prime market, homes for billionaires that are priced at £100 million or above. These £100 million-plus homes are two types, either vast mega-mansions or huge penthouses, they are unique trophy assets.”

There are three key reasons for the emergence of this giga-prime market in London, availability, desire and investment opportunity. Billionaires like owning trophy homes in London because it is good for their image, a purchase always creates profile enhancing global publicity, they know that in London there is a fair and just rule of law, good governance and also safety for themselves and their families, and they also like London because each decade property prices go up, so the value of their property assets increases.”

Crucially the giga-prime market is about an investment opportunity. If you buy a brand new home you pay a premium, if you purchase a second-hand home you need to wait for the market to rise to make a return, but with a property that needs heavy refurbishment or planning and conversion to create a new mega-mansion the potential uplift in value for the owner is substantial. The key trophy homes in Mayfair, Belgravia and Knightsbridge can sell for anything from £4,500 to £7,000 per sqft, depending on the level and quality of the refurbishment, so based on this the 17,131 sqft refurbished mansion at 38 Hill Street could be worth up to £100 million, likewise, the mansion at 2-8a Rutland Gate which is currently 62,000 sqft in size, if it was remodelled and expanded in size, based on current trophy asset values it could be worth anything from £310 million to over £500 million, either way, the most valuable private home in London.”

Other examples include 38 Hill Street in Mayfair, Forbes House in Belgravia, the former Brazilian Embassy on Green Street in Mayfair and 1-3 Cornwall Terrace in Regent’s Park.

38 Hill Street in Mayfair is on the market for £35m and, according to Wetherell, could be worth up to £100 million.