Surprisingly, Brexit isn’t expected to have a drastic impact on the real estate industry, with the ever-growing Brexit threat doing little to dampen property power.
However, it seems political instability as a sub-set of Brexit, will have an effect on the industry. Almost 75 per cent of respondents believe political and economic volatility will mean more selective decision making when it comes to investment, which may in fact be a positive opportunity for the sector.
Prime residential, retail and hotels are expected to be the most affected by Brexit. With the effect of Westminster’s latest EU decisions affecting all three subsectors relatively evenly. Yet with instability comes opportunity, and the market may be able to use this to its advantage.
The biggest surprise of the post-referendum period has been the strength of investor and occupier demand for UK real estate. Indeed, some non-sterling denominated investors are seeing the potential weakening of the pound as an opportunity rather than a risk."
Mat Oakley – Head of Savills European Commercial Research