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Egyptian billionaire Naguib Sawiris has reduced the asking price for his London Knightsbridge penthouse by about 13 percent, or £10 million ($13.2 million), after struggling to find a buyer. The property is now listed at £70 million ($92.2 million), down from £80 million ($105.4 million) two months ago.
High-end property market shows weakness
Sawiris, Egypt’s richest man with a net worth of $9.89 billion, according to the Bloomberg Billionaires Index, purchased the Knightsbridge apartment in 2011 for £37.5 million ($49.4 million). The penthouse had been marketed privately at above £80 million ($105.4 million) for several months before its public listing about a year ago.
Market data shows the decline mirrors broader trends in the high-end UK property market. Homes priced above £5 million ($6.7 million) fell 27 percent between August and October compared with the same period last year, according to property consultancy LonRes.
This decline is linked to a growing number of wealthy individuals reconsidering their UK holdings following recent tax reforms. Earlier this year, Sawiris’ younger brother, Nassef, joined the wave of billionaires leaving the UK. Citing the end of the non-domicile tax status, he relocated to Italy after more than a decade of benefiting from the UK’s preferential tax rules.
Billionaires move abroad over taxes
The UK government abolished the centuries-old non-dom tax status on April 6, a move that ended the long-standing practice of taxing foreign billionaires only on their UK-based income and assets. Sawiris’ move reflects the shift, as other prominent figures, including steel magnate Lakshmi Mittal and German investor Christian Angermayer, have moved to countries such as the UAE and Switzerland in search of more favorable tax environments.
The decision to sell his penthouse in London's Knightsbridge represents a reevaluation of his financial priorities in light of the shifting tax environment in the UK. The price cut reflects how difficult it is to sell ultra-luxury real estate in a market that is adapting to new rules and the exodus of affluent investors.
