Commercial property market set for Brexit buffeting

M&G Real Estate said London was still seen as a 'global safe haven' by overseas investors. Picture: Peter Macdiarmid/Getty Images
M&G Real Estate said London was still seen as a 'global safe haven' by overseas investors. Picture: Peter Macdiarmid/Getty Images
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Britain’s commercial property market could undergo a “short sharp” adjustment as uncertainty mounts during the Brexit negotiations, a new report has suggested.

The study, by M&G Real Estate, said capital values could fall by as much as 10 per cent, but any drop would be short-term.

It said anecdotal evidence suggested overseas buyers were looking to take advantage of the slump in the value of the pound to 31-year lows.

READ MORE: Fears over ‘hard Brexit’ push pound to 31-year low

“Indeed, Brexit appears to largely be a domestic concern, with overseas investors continuing to target the UK and viewing London as a global safe haven,” the report noted.

Experts said the overall property market was in a stronger position to tackle the economic and political uncertainties than during the 2008 financial crisis.

It comes after the Bank of England warned last month that the commercial property market is at risk of a “sharp adjustment”.

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