How could Brexit shape the London property market?

07 Nov 2017

A survey has been carried out among 3,500 real estate investors – and the findings are quite interesting. Apparently, Germany has overtaken the UK as a favourable property investment location for the first time this quarter.

BrickVest, the property portal that released the figures, claim that 33% of those investors polled preferred Germany as their location of choice for property. This compared to just 27% who preferred the UK.

Nevertheless,  the commercial property market  is set to hit £20bn this year. Property adviser, Savills, predicted that the total volume of commercial real estate transactions will top £20bn in London alone,  and that looks set to be beaten by the end of the year. If the market exceeds  £20bn, it will be higher than the previous record level of £21.6bn set in 2014.

Contrary to BrickVest’s findings, which  showed that investment this quarter had dropped in the capital as British investors appeared to lose faith in the UK,  45% chose the UK as their favoured regions, only marginally down from 46% during the same quarter last year. 21% of US investors, 19% of French investors and 18% of German investors favoured the UK this quarter, down from 26%, 28% and 21% respectively.

Some experts are saying future uncertainty surrounding Brexit has put investors on the back foot, leaving Britain a less attractive place to invest in property – particularly for foreign investors who may be concerned about the value of the pound.

However, with soaring figures in the world of commercial property, only time will tell what effect Brexit will have on the London property market. Rising inflation and rising interest rates may also have an impact.

Nevertheless, London is fiercely resilient, so despite Brexit,  London will remain one of the leading economic cities in the world and will continue to attract global investment into the property market.

If you are considering investing in property, residential or commercial, contact DMH Stallard’s Real Estate team to see how we can help.

Further reading

Destination: office?

Blog, News & PR
29/07/2021
Emily Wood considers the results of our recent survey and the implications for the future of the post-pandemic workplace
Read more Read

Commercial lease renewals and pandemic clauses

Blog
28/07/2021
Will commercial reality trump the law when leases are up for renewal? Property expert James Picknell takes a look
Read more Read

Permitted Development Rights and the revised NPPF: Article 4 directions

Blog, Legal Updates
22/07/2021
A revised National Planning Policy Framework has just been published. Holly Stevenson focuses on the change to Article 4 Directions
Read more Read

Can commercial lessees now ‘relax’ given the extended Government moratorium on forfeiture for non payment of rent?

Legal Updates
20/07/2021
Property Litigation Partner, Keith Pearlman, doesn't think so and explains why they could be in for a nasty shock from 1 October of this year
Read more Read
  • Brighton Office

    1 Jubilee Street

    Brighton

    East Sussex

    BN1 1GE

  • Gatwick Office

    Griffin House

    135 High Street

    Crawley

    West Sussex

    RH10 1DQ

  • Guildford Office

    Wonersh House

    The Guildway

    Old Portsmouth Road

    Guildford

    Surrey

    GU3 1LR

  • Horsham Office

    Ridgeland House

    15 Carfax

    Horsham

    West Sussex

    RH12 1DY

  • London Office

    6 New Street Square

    New Fetter Lane

    London

    EC4A 3BF

  • Get in touch