A Qatari sheikh is selling a London estate to another member of the royal family for £39 million.

The Prime Minister of Qatar, Sheikh Mohammed bin Abdulrahman Al Thani, recently sold his luxurious mansion in London, located in the prestigious Mayfair district, to another member of the ruling family. This deal has become one of the most expensive in the housing market in the British capital over the past year. According to informed sources, the Sheikh sold this historic Grade II mansion, situated between Hyde Park and Berkeley Square, for39 million pounds sterling (49 million dollarsIn October. It should be noted that Sheikh Mohammed purchased this property in 2021, but the official documents do not indicate the name of the new owner.

Asset divisionTransactions between members of ultra-wealthy families can occur for various reasons, including the desire to avoid costs associated with agency services and to minimize the risk of inheritance tax in the event of an inheritance. The sale was conducted directly between Sheikh Mohammed and another member of the royal family, insiders reported.

The press service of the Qatari government did not provide comments in response to journalists' inquiries regarding this deal. Notably, Sheikh Mohammed, an experienced diplomat, was appointed Prime Minister of the gas-rich state last year while continuing to serve as Foreign Minister. The Sheikh plays a crucial role in negotiations between Qatar and European countries concerning natural gas supplies amid the energy crisis triggered by Russia's invasion of Ukraine.

The mansion sold by the sheikh became one of the few properties that went under the hammer for a price exceeding30 million pounds sterlingIn London last year.

The premium real estate market in the London area remains at a fairly high level, despite rising interest rates from global central banks and the potential tightening of tax legislation for wealthy foreigners. However, some sellers have had to reassess their price expectations. For example, British billionaire Bobby Aora sold his apartment in the Belgravia area, adjacent to Mayfair, for23.5 million poundsthat on30%below the price he paid in 2013. In January of this year, the total value of sold properties in the best areas of London fell below that level for the first time since early 2019.90%from the requested prices, according to data from the research company LonRes.

Qatari elites have long been actively investing in real estate in Mayfair, which has led to the area being nicknamed "Little Doha." For instance, Abdulhadi Mana Al-Hajri, the owner of the Ritz hotel and a relative of the ruler of Qatar, bought a townhouse last year for37.5 million poundsin close proximity to the mansion that previously belonged to Sheikh Mohammed.

In 2023, the Mayfair area became one of the most popular locations for transactions worth over5 million poundsand more, having composed8%such deals in London, according to the brokerage company Savills Plc. However, some property owners — including other members of the Qatari royal family and the Al-Hayat family, which holds significant assets in the Gulf region — have considered selling their London mansions over the past year. The share of buyers from the Middle East in property purchases in the wealthiest areas of central London has decreased to5%in recent12 monthscompared to10%In 2019, as reported by the brokerage company Hamptons International.