Demand for UK Commercial Property from overseas investors is expected to increase this year despite the UK now preparing to leave the European Union. This news comes following a recent survey released by the Royal Institution of Chartered Surveyors (RICS).
According to the survey, the decline in GBP was a contributing factor to the continued demand attracting foreign investors during the final quarter of 2016.
The majority of the UK commercial property market does seem to have recovered from the immediate post-Brexit uncertainty.
Following Prime Minister Theresa May’s comments last week confirming that Britain will leave the European single market, HSBC (HSBA.L) and UBS (UBSG.S) have already said they could each move roughly 1,000 jobs out of London.
The overall findings from the survey showed an increase in commercial property enquiries over the quarter across all sectors, despite concerns over the possible relocation of UK based companies.
Simon Rubinsohn, Chief Economist at RICS said “The results from the survey suggest the commercial property market is continuing to attract investor interest despite ongoing concerns about pricing in the capital and the prospects for the economy more generally.”
He added, “the results of the occupier market highlight the resilience of the economy in the wake of the vote to leave the EU, but also clearly demonstrates the demand for large warehouses to support the development of the distribution industry as consumers on line purchases are increasing.”
Source: Reuters and FM World
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