An Appraiser Breaks Down the Value of Buckingham Palace (2024)

What if you were an appraiser tasked with valuing one of the most famous, lavish palaces in the world?

Imagine it. You’re walking around Buckingham Palace, marveling at the 17th century, French neo-classical masterpiece home to British royalty. In hand, you've got your tablet, your appraisal software, a laser measure, and a camera – and hopefully, you’ve got good walking shoes.

Where would you even start?

Well, we asked an actual appraiser for all the tea. Read on to learn how much Buckingham Palace is really worth and how an appraiser would appraise it.

(You might be surprised!)

Buckingham Palace’s Estimated Opinion of Value

Let’s get right to it.

Our appraiser estimates that Buckingham Palace has a value of roughly $5 billion, or about £3.9 billion.

Only Witanhurst, London’s second largest private residence, comes close to being comparable – albeit only in amenities and not size.

But how did our appraiser get to this conclusion? It’s all in the approach. And with this property, it's a little different than you might think.

Credit: Diliff, Buckingham Palace from gardens, London, UK - Diliff, CC BY-SA 3.0

Buckingham Palace Can’t Be Appraised as a Home

First off, there's an important detail appraisers must note in any appraisal report. It’s called “highest and best use" and it refers to the best use of a real estate property given its legal, physical, and financial purpose.

Our appraiser’s property research determined that Buckingham Palace’s highest and best use is as a museum, not as a home.

Key evidence for this (because appraisers always cite evidence to back up their conclusions) includes these factors:

• The palace is open to the public for tours.
• It is used for distinguished state visits and Royal events.
• It houses the working administrative offices of the British monarchy.
• It holds many priceless artifacts and furnishings that are part of the extensive Royal Collection.
• The palace is not “owned” by the reigning monarch or anyone, for that matter. Instead, it’s held in an independent trust overseen by the British Treasury.
• The palace can never be legally sold to a buyer as a traditional home would be.
• There are virtually no comparable residential properties that could be used for a sales comparison.
• The value of Buckingham Palace is based on its historical and cultural significance rather than its market value as a residential property.

A Buckingham Palace Appraisal Would Be Done For Insurance Purposes Only

Given the above factors, Buckingham Palace could only be appraised as a museum and, primarily, only for insurance purposes. This means our appraiser had to use what’s called the cost approach method of appraisal. It’s a way to determine the value of a property based on its total cost to replace. And, in the case of Buckingham Palace, much of its original craftsmanship could never be replicated.

Multiple Appraisers Would Need To Be Consulted For the Appraisal

Our appraiser also noted that if this appraisal was taking place in the real world, a real property appraiser wouldn’t be the only one consulted. You would need three appraisers specializing in the major areas of appraisal to determine an accurate value in a way that complies with the Uniform Standards of Professional Appraisal Practice (USPAP).

This (hypothetical) team of appraisers would include:

• A real property appraiser to determine value of the land and building.
• A personal property appraiser to calculate the value of Royal Collection art, furnishings, vehicles, and jewelry.
• A business valuation appraiser to evaluate the income stream generated by public tours and merchandise sales.

What Features Add To (and Reduce) Buckingham Palace’s Value?

Only after determining the highest and best use, a valuation approach, and others to consult can the analysis of property features begin.

Buckingham Palace has so many interior and exterior amenities that we simply can’t give an individual estimated value for them all. (You’d be stuck on this page all day.)

But here’s a quick rundown of the palace’s most notable features that contribute to its billion-dollar value.

Interior Features

Exterior Features

Among the Most Valuable Features: The Royal Mews & the Queen’s Gallery

The Royal Mews

The Royal Mews is home to the Royal family’s historic horse-drawn carriages, luxury vehicles, and working equestrian stables. Altogether, the luxury car and historic coach collection are worth an estimated $15 million (£11.8 million) alone.

The Queen’s Gallery

Priceless porcelain, historic paintings, precious gems, fine sculpture, and antique furniture make up the millions of pieces in The Royal Collection, worth an estimated $12.6 billion (£10 billion). Roughly 450 pieces of the pricey collection are housed (and rotated on and off display) in the Queen’s Gallery on any given day.

Features That Reduce Value: Aged Interior, Accessibility is Limited

Expensive (and Expansive) Updates Needed

It’s no secret that Buckingham Palace is a little....old. In fact, the palace is currently undergoing a 10-year, nearly $460 million (£369 million) renovation to update its aged interior. The updates will include electrical wiring, plumbing, heating, lighting, improved accessibility, solar panel additions, and updated flooring. These renovations stand to increase the current value.

Accessibility is Limited

While the palace is considered accessible to disabled visitors, it’s not without its challenges. Reportedly, flooring in various rooms is uneven, step-free access must be arranged ahead of time, and there are a limited number of elevators for disabled visitor use. Mobility and accessibility renovations will generally increase the value of real estate property.

Learn More About a Career in Appraisal With The CE Shop

Did you find this analysis fascinating? Do you have a passion for real estate and data? Real property appraisal might be for you! Learn more about a rewarding career in appraisal by visiting our Appraisal Essentials blog. Or check out our appraisal qualifying education, USPAP, and CE courses in your state.