Brexit Delayed Deals, But It Didn’t Destroy Property Values, C&W Says
British property deals are taking longer to complete as a result of Brexit, but the shock has not decimated values the way people feared it would.
Fifty-four percent of the deals that were live just before the Brexit vote have been sold, 15% are under offer, 25% were withdrawn and 6% are still on the market, Cushman & Wakefield reports. Those numbers are by value, and while more deals were withdrawn than before the vote, values have only fallen an average of 3%.
Despite the resilience of British property values, transactions took longer to complete as investors remained cautious following Brexit. Projects over $125M were hurt the most and took three months longer than normal to complete, but by November they caught up with smaller projects. Over the long term, C&W said investors still see the UK as a secure market in which to produce income.