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.

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