Look inside London’s most expensive property, which boasts a living space larger than a football pitch and sold for $220 million

2-8 The most expensive property in London is Rutland Gate. According to The Guardian, it went on sale in October for £200 million, or $221 million.

2-8 Rutland Gate.
Dan Kitwood/Getty Images

2-8a Rutland Gate was built between 1985 and 1987, according to the official website for the building. In 1998, it was transformed from five apartments, including a caretaker’s apartment, into a single-family dwelling.

Bloomberg first reported that Chinese billionaire Cheung Chung-kiu purchased the property in 2020 for a record £210 million, or approximately $232 million. Hui Ka Yan, the founder of the Chinese real estate development company The Evergrande Group, is the actual owner of the property, according to a Financial Times investigation from October.

The official website for 2-8 Rutland Gate does not disclose the current owner, but indicates that they are “a family from overseas.” It was once held by the late Saudi Arabian Crown Prince, Sultan bin Abdul-Aziz, according to The Guardian.

According to the property’s website, despite being the most costly in the British capital, the interior is in a state of total disrepair. The Guardian claimed that since the death of the crown prince in 2011, it has been inadequately maintained.

The property’s reconstruction team, which includes the architectural company Squire & Partners, noted on the website, “The structure was acquired abandoned and severely deteriorated, necessitating a minimum of significant repair before the new owners can move in.”

Nikodem Szumilo, a professor of the built environment at University College London who specializes in economics and finance, told Insider that despite the property’s decaying interior, its size allows it to command a premium price.

Szumilo stated, “There is nothing exceptional about it other than the fact that it is a vast plot of land.” However, it can be subdivided into smaller houses worth millions of pounds, he noted.

2-8 Rutland Gate is located in central London’s posh Knightsbridge neighborhood, just south of Hyde Park.

Hyde Park.

Andrew Holt/Getty Images

According to the Guardian, the home is located near Kensington Palace, the residence of the British royal family. According to the BBC, more than half of the property’s windows offer a view of Hyde Park.

Knightsbridge is the most expensive address in London, with average property values of £15.6 million, or $18 million, according to the Evening Standard and Land Registry data cited in the article.

According to Christian Hilber, a professor of economic geography at the London School of Economics and Political Science, the location is a major factor in why 2-8 Rutland Gate is so costly, as it is for much of the real estate in the area.

“It is situated in one of the world’s most coveted settings. It is adjacent to a magnificent park and a palace, and these properties are in high demand “Hilber told Insider.

The Guardian reports that at least five prospective purchasers have viewed the house since it was relisted.

According to Hilber, the huge greenbelts around London and the city’s conservation rules make it impossible for developers to create residences, which drives up the price of structures such as 2-8 Rutland Gate.

“A large portion of central London is preserved,” stated Hilber. “There is little land available for development. To construct a new structure, you must demolish an existing one and start from scratch, which is extremely expensive.”

2-8 As with other Knightsbridge buildings, Rutland Gate caters to a specific clientele of wealthy individuals, the majority of whom are not British citizens.

Rafik Hariri; Prince Sultan of Saudi Arabia.

Jamal Saidi/Reuters; Patrick Kovarik/AFP/Getty Images

The property has been owned by a number of billionaires, including the late Crown Prince of Saudi Arabia, who purchased it from the late former Lebanese prime minister Rafik Hariri in 2005.

According to a news release by British Land, the previous alleged owner of the building, Cheung, already has a vast real estate portfolio in London, including the “Cheesegrater” tower, which he purchased for nearly £1 billion in 2017.

Multiple royal families from the Middle East and “very affluent” investors from the United States have reportedly asked about the property since it was put up for sale earlier this month, according to the Guardian and sources familiar with the transaction.

Szumilo stated that 2-8 Rutland Gate, like many buildings in Knightsbridge, attracts an ultra-wealthy clientele who are “extremely sensitive of their name and prestige.”

“Many properties in that area of London will have a similar history of ownership,” said Szumilo. They frequently utilize the same investment advisers and also discuss what constitutes good assets.

Multiple images on the webpage for 2-8 Rutland Gate depict the level of the property’s decay.

Inside 2-8 Rutland Gate.

Squire and Partners

According to the Guardian, before 2-8 Rutland Gate fell into ruin, the house contained 45 elegant staterooms, 20 bedrooms, a swimming pool, health spa, and gym, as well as an underground parking.

Photos from Pro Auction Limited reveal that when the house was still held by the late Crown Prince of Saudi Arabia, it was embellished with 24-karat gold bronze candle sconces, tissue box covers, and trash cans. The property was also outfitted with diamond chandeliers, bidets, and drapes, as reported by the Guardian.

“When you purchase a home in one of the most expensive regions in the world, you want modern luxuries,” said Szumilo. He further explained that ultra-prime properties are “comparable to luxury items” and are marketed particularly to the wealthiest individuals.

According to the property’s website, “soft strip and investigation works” have been performed in order to better plan for the property’s renovation as a family home. While the property is described as having “extremely low energy performance and sustainability credentials,” the actual condition of the building’s amenities and whether or not it has heating, ventilation, and electricity are not specified.

2-8 Rutland Gate has been owned by numerous persons over the past several decades, and its ownership will certainly continue to change.

Internal to 2-8 Rutland Gate.

Squire and Partners

According to the property’s project summary, a reduction in overall floor size is anticipated as the refurbishment involves repair, partial demolition, and exterior modifications.

Hilber stated that the property’s location in one of the most desired real estate markets is unlikely to prevent prospective purchasers from snatching it up despite its diminution in size.

“Property prices are controlled by demand and supply,” Hilber said, adding that there is no shortage of wealthy persons seeking to purchase properties in London, particularly in locations like Knightsbridge, which is adjacent to the political district.

Szumilo feels the ownership of 2-8 Rutland Gate will continue to shift as it is not a “main residence where their family will live forever.”

“This is a mechanism for people to temporarily or permanently lodge their funds. It is an investment property rather than the owner’s primary residence “Szumilo added.