London's most expensive property, which has a living space larger than a football pitch, is in ruins but just hit the market for $220 million take a look inside

2-8a Rutland Gate was constructed between 1985 and 1987, according to the property's official website. It was initially designed as five apartments, which included an apartment for the property's caretaker, and was then converted into a single-family home in 1998.

In 2020, Chinese billionaire Cheung Chung-kiu bought the property for a record £210 million, or around $232 million, Bloomberg first reported. According to an October report by the Financial Times, the founder of Chinese property developer The Evergrande Group, Hui Ka Yan, is the actual owner of the property.

The official website of 2-8 Rutland Gate does not reveal who currently owns it, but states they are "an overseas family." It was previously owned by the late Crown Prince of Saudi Arabia, Sultan bin Abdul-Aziz, per the Guardian.

While the property is the most expensive in the UK capital, its interior is in complete disrepair, according to its website. The Guardian reported that it has been in a poorly maintained state since the crown prince died in 2011.

"The building was acquired vacant and heavily dilapidated, requiring as a minimum, extensive refurbishment before the new owners can take occupation," the property's reconstruction team, which comprises of several companies including architectural firm Squire & Partners, wrote on the website.

Despite the dilapidated interior, its size allows it to command such a high price tag, Nikodem Szumilo, a professor of the built environment who specializes in economics and finance at the University College London, told Insider.

"There's nothing special about it, other than the fact that it's a large piece of real estate," Szumilo said. "But you can parcel it as smaller properties worth millions of pounds," he added.

The property is located near Kensington Palace, a residence of the British royal family, per the Guardian. Over half of the property's windows have a view of Hyde Park, according to the BBC.

Knightsbridge is the most expensive address in London, where property prices average at £15.6 million, or $18 million, according to the Evening Standard, citing Land Registry data.

Like much of the real estate in the district, the location plays a big role in why 2-8 Rutland Gate is so expensive, according to Christian Hilber, a professor of economic geography at the London School of Economics and Political Science.

"It's located in one of the most desirable locations in the world. It's next to a beautiful park, a palace, and demand for these properties is extremely high," Hilber told Insider.

At least five prospective buyers have toured the property since it was put back on the market, the Guardian reported.

Hilber said that because of the massive greenbelts around London and the city's conservation policies, it's difficult for developers to build properties, which drives up the cost of buildings like 2-8 Rutland Gate.

"A lot of central London is preserved," Hilber said. "There's not much land for development. If you want to build a new building, you have to knock another one and build it from scratch, and that's really costly."

The property has been owned by various billionaires, including the late Crown Prince of Saudi Arabia, who acquired it from the former Lebanese prime minister Rafik Hariri after the construction mogul's death in 2005.

The property's previous reported owner, Cheung, already has a massive real estate portfolio in London, including the "Cheesegrater" skyscraper, which he bought for over £1 billion in 2017, according to a press release by British Land.

Several royal families from the Middle East and "super rich" investors from the US have inquired about the property since it went up for sale earlier this month, the Guardian reported, citing sources familiar with the sale process.

Szumilo said that 2-8 Rutland Gate, like many buildings in Knightsbridge, attracts a specific clientele of ultra-wealthy individuals who "are very protective of their reputation and status."

"Many buildings in that part of London will have a similar ownership history," Szumilo said. "They often use services of the same investment advisers and also speak to each other about what good investments are."

Cheung obtained permission to reconstruct and refurbish the property in 2021, per the Guardian. The refurbishment was estimated to cost at least $276 million, according to Forbes.

According to the property's website, construction works were expected to begin in the fourth quarter of 2021, but it does not state if the refurbishment has since begun. The property is planned to have a triple-height ballroom and a garage that spans two floors, per a blueprint by Squire & Partners.

Szumilo said that the prospective renovation of the property will only increase its value. 2-8 Rutland Gate is expected to be worth as much as £500 million, or $580 million, when the property's refurbishment is complete, according to the Guardian, citing estimates by real estate agents.

But before the renovation works could begin, the property was put back on the market just over a year after it was purchased.

"The owner can pay for the refurbishment themselves and then sell it, or they can sell the property without refurbishments at a discount. If it was in a better state, it would be even more expensive than what it currently costs," Szumilo said.

Szumilo added that one reason the owner might have decided to sell the property before refurbishing is if returns on the investment were less lucrative than expected.

"From a financial standpoint, if it's no longer a fit for the owner's portfolio, or the investment doesn't justify the risk, you're just not going to go ahead with it," Szumilo said.

A 2020 report by the Guardian said that if 2-8 Rutland Gate was renovated and partitioned into several apartments, the property could be worth as much as £700 million.

Before 2-8 Rutland Gate fell into a state of disrepair, the property featured 45 luxurious staterooms, 20 bedrooms, a swimming pool, a health spa and gym, and an underground garage, per the Guardian.

When the property was still owned by the late Crown Prince of Saudi Arabia, it was adorned with bronze candle sconces, tissue box covers, and garbage bins all made out of 24-karat gold, photos from Pro Auction Limited show. The property was also fitted with bejeweled chandeliers and jewel-encrusted bidets and curtains, the Guardian first reported.

"When you buy a property in one of the most expensive areas in the world, you really want the modern-day luxuries too," Szumilo said. He added that ultra-prime properties are "similar to luxury goods" and are specifically marketed to the wealthiest people.

The property's website states that "soft strip and investigative works" have been conducted to better plan for the property's refurbishment as a family home. While it describes the property as having "very poor energy performance and sustainability credentials," it doesn't state the exact condition of the building's amenities, and if it has heating, ventilation, and electricity.

According to the property's proposal brief, an overall reduction in floor area is expected as the refurbishment includes repair, partial demolition, and alterations to the building's facade.

But the reduction in size is unlikely to dissuade prospective buyers from snapping up the property as it's located in one of the most desirable real estate markets in the world, Hilber said.

"Property prices are determined by demand and supply," Hilber said, adding that there's no shortage of wealthy individuals looking to own properties in London, especially in areas like Knightsbridge which is close to the political center.

Szumilo believes that the ownership of 2-8 Rutland Gate will continue to change in the future as it's not a property that is a "primary residence where their family will live in forever."

"This is a vehicle for people to park their money temporarily or a long period of time. It's more of an investment property rather than one that is occupied by the owner," Szumilo added.