Live in a WWII-Era U.S. Embassy in London for £21.5 Million

In the heart of London, a duplex apartment within the city’s former U.S. Embassy, which has been recently transformed into super-prime residences, has hit the market for £21.5 million (US$26.9 million).

The unit, which has been given the presidential moniker of the “Oval Residence,” is within No. 1 Grosvenor Square, and is the last sponsor unit available from developer Lodha UK. The building, on Mayfair’s uber-posh Grosvenor Square, served as the U.S. Embassy from 1938 until 1960, and then as the Canadian High Commission from 1962 until 2013. After being restored brick by brick, quite literally , it reopened as residences in 2022.

Some of the prominent figures of the 20th century have passed through its doors, including John F. Kennedy, who called it home when his father was appointed U.S. Ambassador to the U.K. in the 1930s, Winston Churchill and Eleanor Roosevelt, who was loaned an apartment when she visited London during World War II.

The three-bedroom home spans 4,400 square feet and was designed by Blandine de Navacelle, creative director of Studio Lodha, the developer’s interior design practice.

“No.1 Grosvenor Square is one of the capital’s most iconic addresses, and the design of the Oval Residence needed to reflect this,” de Navacelle said in a news release. “With large, open-plan living spaces and floor to ceiling windows, the residence offered the perfect backdrop for statement artwork and eclectic, sculptural furniture.”

The home also boasts a sleek kitchen, a home theatre, a dining area, wood-panelled walls, fireplaces and a 576-square-foot terrace.

“I regularly visit French galleries and furniture ateliers and am drawn to their art-centric approach to design and interiors,” de Navacelle said. “I wanted to bring a touch of this Parisian eclecticism to No.1 Grosvenor Square, creating a sophisticated and elegant private residence that blends both the classic and the contemporary.”

The turn-key flat is being sold with all of its furnishings.

Future occupants will also have access to the building’s amenities, including an in-house concierge team, a private health club and spa, a pool and a cinema.

Grosvenor Square has been one of London’s most-famed addresses for centuries. Currently in the middle of a dramatic remaking, No.1 Grosvenor Square is just one the enclave’s storied buildings to be undergoing, or to have undergone, a complete transformation.

The former U.S. Naval Building at No. 20, has been transformed into the first solely residential project from the Four Seasons, and the iconic Eero Saarinen-designed U.S. Embassy that spans the entire western side of the square, is set to become the Chancery Rosewood hotel by 2025.

London has no shortage of diplomatic buildings that have been transformed into luxury homes. In February, and for the first time in more than a century, the former Italian Embassy, now a lavish mansion, hit the market for £21.5 million . The former Cypriot Embassy, meanwhile, sold in March for £25 million to a buyer seeking a grand family home in the city.

Australia’s luxury property market is being quietly reshaped by one of the most significant wealth expansions in the world.

According to Knight Frank’s latest Wealth Report, the country’s billionaire population is set to grow by 77 per cent over the next five years, rising from 48 to 85 individuals.

That surge sits within a broader wave of wealth creation. Ultra-high-net-worth individuals, those with more than US$30 million, are forecast to increase by nearly 60 per cent to over 26,000 Australians by 2031.

Globally, the pace is accelerating. The report reveals that 89 new ultra-wealthy individuals are created every day, a figure that underscores a structural shift in capital formation rather than a cyclical upswing.

For luxury property markets, this is not just a headline number. It is a demand driver.

Australia’s wealth story is increasingly underpinned by diversification across resources, finance, technology and services, creating a depth of private capital that is both mobile and strategic.

And mobility is key. The ultra-wealthy are no longer tied to a single market. Instead, they are operating across multiple global hubs, maintaining footholds in cities like London, New York and Singapore, while using Australia as a stable base.

In this environment, real estate becomes less about shelter and more about positioning. Trophy assets remain desirable, but capital is increasingly being deployed across the full risk spectrum, from long-term holds to value-add opportunities. For Australia, the implications are clear. As wealth expands, so too does the expectation of product, and the locations that can attract it.

The billionaire effect

While property remains central to wealth preservation, the latest data shows that capital is increasingly spreading across luxury asset classes, albeit with a more disciplined approach.

Knight Frank’s Luxury Investment Index recorded a modest 0.4 per cent decline in 2025, signalling a stabilisation phase after several years of correction.

But beneath that headline number is a more telling shift. Collectors are moving away from speculative buying and toward assets defined by rarity, provenance and cultural significance.

Impressionist art led the market, rising 13.6 per cent, buoyed by landmark sales including a US$236 million Klimt painting. Watches also performed strongly, up 5.1 per cent, driven by continued demand for brands like Patek Philippe and Rolex.

At the same time, more volatile categories have corrected. Whisky values fell 10.9 per cent, while parts of the fine wine market have softened following pandemic-era highs.

Perhaps the most notable trend is behavioural. Younger investors are entering the market through fractional ownership platforms, gaining exposure to high-value assets that were once out of reach.

For property, the parallels are clear. The same focus on scarcity, narrative and long-term value is increasingly shaping buying decisions at the top end of the residential market.

Global wealth

The growth in billionaires is not just increasing demand, it is changing where that demand is directed.

In Australia, Brisbane has emerged as one of a handful of global cities experiencing rapid change in its luxury positioning. The city’s transformation is being driven by infrastructure investment and the 2032 Olympics, with top-end apartment prices rising from around US$6 million to more than US$10 million in just 12 months.

Luxury price growth has remained steady, with Brisbane rising 2.1 per cent in 2025, while the Gold Coast recorded 2.8 per cent.

At the same time, buying power is tightening. US$1 million now buys 5 per cent less in Brisbane than it did five years ago, reflecting the upward pressure on prime markets.

The trend is not confined to capital cities. Regional lifestyle markets are also capturing attention. Geelong’s waterfront has been identified as one of the world’s hottest luxury residential markets, driven by a combination of coastal amenity, infrastructure and relative value.

In these markets, pricing is no longer the sole driver. Lifestyle, accessibility and long-term growth are increasingly shaping buyer decisions, particularly among globally mobile wealth.

Alternative luxury assets

Beyond residential property, high-net-worth individuals are continuing to diversify into alternative assets that combine lifestyle and investment potential.

One of the most compelling examples is vineyard investment. Knight Frank’s Global Vineyard Index highlights the Barossa Valley as one of the best-value wine regions globally, where US$1 million can secure more than 18 hectares of land.

Despite a 10 per cent decline in land values over the past year, the broader outlook remains positive, particularly as the global wine industry shifts toward premiumisation.

This “trading up” trend is seeing consumers favour higher-quality, provenance-driven wines over mass-market products, reinforcing the long-term appeal of established regions like the Barossa and Eden Valleys.

For investors, the appeal lies in the intersection of lifestyle and capital preservation. Vineyard assets offer not only production potential, but also a narrative — something increasingly valued in a market where experience and authenticity carry weight.

Live in a WWII-Era U.S. Embassy in London for £21.5 Million

The three-bedroom, duplex apartment in the notable Mayfair building spans 4,400 square feet

Australia’s wealthy class is expanding fast, and Knight Frank says that a surge in billionaires is reshaping the nation’s luxury property market.