Each month we report on the current state of real estate, but this month has been dominated by one single topic: Brexit.
Yes, on June 24th we discovered that the UK will be saying ta’ra to the EU, leaving the world in a state of shock. And you can be damned sure that this has affected the state of real estate in July.
Property trusts suffer hard
There is often no better long-term investment plan than a property trust. But by their very nature, they will collapse in the event of mass-withdrawals. Post-Brexit, too many people have been trying to withdraw cash from these trusts, resulting in suspended accounts until the properties can be sold.
Commercial property is boosted
It’s not all doom and gloom, and a real boost to the commercial property market was delivered when the developers of the Cheesegrater in London (aka Leadenhall Building) announced that the building had been filled. With rent in the building reaching up to £100 per square metre, this is a real post-Brexit blues boost that the property sector has been needing.
Investment opportunities are rife
A US private equity firm this month announced it will be investing £1 billion in UK property, following the cut prices available, both to residential and commercials real estate. The opportunity for buyers is clear, and great deals are available among the uncertainty. We all know property bounces back, so now is the time to buy.
So there you have it. July 2016 was the month that Brexit dominated the property market. Let’s hope next month gives us respite and something else to talk about. But remember, now is the time to buy!