Harrods Estates, the luxury London property agency established in 1897, has announced its closure after 130 years in operation. The decision to shut the firm’s last remaining office on Brompton Road, Knightsbridge, marks the end of a historic chapter in the city’s high-end real estate sector.

Harrods Estates initially served as an exclusive platform to market prestigious homes to British aristocrats and affluent international buyers, including American industrialists. Over time, it expanded its reach beyond London, opening offices throughout the Home Counties and even in Monte Carlo. The agency also gained public interest due to connections with the British royal family, notably having Princess Diana’s stepmother as a director for a decade.

The firm is owned by the Qatar Investment Authority, which acquired the Harrods brand and its associated businesses in 2010. Shaun Drummond, residential director at Harrods Estates, said the closure reflects a strategic decision to concentrate on the group's luxury retail operations, serving clients primarily through the Knightsbridge store and online platforms. While existing clients will continue to receive services, these will be phased out by March 2027.

Industry observers have attributed the closure to several factors affecting the London luxury real estate market. Changes in tax policy have played a significant role — notably, the increase in stamp duty rates for overseas buyers, which can now rise to as much as 19 percent, and the abolition of the non-domiciled (non-dom) tax status. The non-dom status had made London an attractive destination for wealthy foreign investors by offering tax advantages. Its removal has been seen as a deterrent to international buyers, leading to a decline in demand for premium properties.

Additionally, shifting buyer preferences have impacted the desirability of certain neighborhoods. Knightsbridge, once a sought-after location, has lost ground to areas such as Belgravia, Mayfair, and Notting Hill, which have emerged as more favored addresses among affluent purchasers.

Some commentators have also suggested that negative perceptions linked to allegations of sexual abuse against the estate’s former owner, Mohamed Al Fayed — who passed away in 2023 — may have influenced clients to turn to competing agencies.

Harrods Estates’ closure underscores broader challenges facing London’s luxury property market amid evolving fiscal policies, shifting buyer tastes, and reputational issues within the sector.