Experts: Brexit to affect British real estate prices

Experts: Brexit to affect British real estate prices
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International experts believe that the decision will affect both residential and commercial real estate segments, Interfax reports.

The UK real estate market is one of the key ones in Europe, that is why the European experts pay much attention to the British referendum on the EU membership (Brexit). Now that the result are clear, the market participants might make forecasts.

John Forrester, Chief Executive of Europe, Middle East, and Africa (EMEA) of Cushman & Wakefield, said that the commercial real estate sector closely watched the referendum and most acutely experienced the impact of uncertainty until the beginning of voting.

He emphasized that the situation will continue to be uncertain, because the business, financial markets and political sector of Great Britain will have to adapt to the consequences of this choice.

Chris Ireland, Chief Executive of JLL, says that in the short term a decrease in demand for the part of lessees is to be expected. There will also be a decline in investors’ interest in the short term and medium term. However, the expert forecasts that later, there should be growth due to interesting offers that will appear in the key regions of the UK and because of the weak pound sterling.

According to the JLL experts, 10% cost reduction on the commercial real estate market is expected.

Experts: Brexit to affect British real estate prices