A luxury apartment in London’s One Hyde Park, once among the most expensive residential properties in the United Kingdom, has sold for nearly £26 million less than its original purchase price. The flat, held through a trust that listed Natalia Rozhkova as its beneficiary, marks one of the most striking examples of how global sanctions, reputational pressure and a cooling prime London market are reshaping high-end real estate activity.

According to documents reviewed by the Financial Times, the apartment sold for £34.8 million in September, far below the more than £61 million paid for it in 2011. The property had been linked to Russian businessman Alexander Ponomarenko, who was sanctioned by the United Kingdom, the European Union and the United States in 2022 following Russia’s invasion of Ukraine. Although the asset was registered through a trust naming Rozhkova, Ponomarenko’s former partner, his name appeared in earlier public reporting about offshore property networks connected to Russian elites.

Lawyers representing Ponomarenko told the Financial Times that he had no economic interest in the property and said the transaction complied fully with UK, US and EU sanctions laws. The buyer was reported to be Israeli tech billionaire Oran Holtzman, who has emerged as an active investor in prime London homes despite broader market weakness. The sale was executed through a chain of companies and trust entities, a common structure in high-value real estate but one that now receives greater scrutiny due to global transparency reforms.

The significant price drop underscores current challenges in London’s ultra-prime market. While One Hyde Park continues to rank among the most prestigious addresses in Britain, prices for the top tier of luxury properties have fallen sharply since their peak a decade ago. Analysts estimate that values in some segments of central London’s luxury market are down as much as 24 percent from 2014 levels. Rising interest rates, new transparency laws, geopolitical uncertainty and shifts in global wealth flows have all contributed to softer demand.

The sanctions regime implemented after the start of the war in Ukraine has amplified these pressures. High-profile Russian individuals found themselves frozen out of Western financial systems, and assets with even indirect links to them attracted increased compliance reviews. Agents now report that properties once seen as safe stores of wealth are more carefully vetted, and buyers are more cautious when any past association with sanctioned individuals emerges. This has slowed transactions at the top end of the market, even when sellers and beneficiaries are not themselves sanctioned.

One Hyde Park, developed by the Candy brothers and Qatar’s sovereign wealth fund, became a symbol of global capital inflows into London during the 2000s and early 2010s. The tower’s top apartments set price records, attracting international buyers seeking privacy, security and exclusivity. During that period, offshore trusts and shell companies were common structures for ownership, a practice that offered anonymity but has since come under pressure as governments move to tighten money laundering rules.

The UK’s Economic Crime (Transparency and Enforcement) Act, passed in 2022, created new reporting requirements for overseas entities holding British property. This forced many owners to update registries to identify their controlling parties or beneficiaries. The legislation led to several disclosures involving properties connected to Russian elites. While the law did not directly force the sale of the One Hyde Park flat, the broader shift toward transparency created a less favorable environment for holding such assets, particularly when public attention grew around sanctioned figures.

Market analysts say the heavy discount on the sale reflects a combination of reputational sensitivity, structural market softness and long-term changes in demand. London continues to attract international wealthy buyers, but their priorities have shifted. There is increased focus on full ownership transparency, tax compliance, sustainability features and proximity to financial hubs. Legacy trophy assets built on older market dynamics do not always command the premiums they once did.

The identity of the buyer, Oran Holtzman, also speaks to shifting demographics in the ultra-prime market. Holtzman has been part of a growing wave of tech entrepreneurs and investors who have replaced traditional oligarch, oil wealth and offshore capital buyers in certain segments of London’s prime housing sector. For these buyers, opportunities created by discounted valuations appear attractive, particularly in high-profile buildings with long-standing prestige.

The transaction also highlights ongoing tension between sanctions policy and real estate markets. While the sale was cleared through compliance checks, properties near individuals under sanctions often face heightened risk assessments from banks, law firms and buyers. Even indirect historical associations can create friction, adding layers of diligence that slow deals and suppress valuations. Industry figures say this is likely to continue as sanctions become a permanent feature of global economic governance.

For Rozhkova, the sale marks a significant financial loss but also a potential step toward simplifying ownership structures that have come under increased international attention. The trust arrangement had kept the property shielded from public view for years, but new reporting laws and geopolitical conditions made such arrangements more visible. The sale transfers one of the most scrutinized flats in London into the hands of a buyer unlikely to draw similar global attention.

More broadly, the deal reflects a transformation in London’s luxury property market. The era when ultra-prime apartments served as anonymous investment vehicles for politically exposed international buyers is fading. Transparency is increasing, enforcement is more rigorous and geopolitical risk now shapes valuations in ways that were once rare. Even trophy assets in landmark buildings are not immune from these forces.

Still, London remains one of the world’s most desirable real estate markets. Despite the downward pressure, demand for high-quality, centrally located properties continues, driven by global investors looking for stability. As interest rates stabilize and financial markets adjust, analysts expect a gradual recalibration rather than long-term decline.

The One Hyde Park sale shows how far the market has shifted and how global political currents can reshape local property values. It also signals that the forces of transparency and compliance now play a central role in determining the real value of international luxury assets, even at the very top of the market.