When Brexit passed, there was a lot of uncertainty floating around about the decision’s impact on the UK’s economy. Experts debated how Brexit would affect London’s real estate market and property prices, with many predicting huge losses. The reality of Brexit’s impact on housing, however, has not been as dramatic as many thought.
- London remains one of the world’s most desirable luxury real estate markets
- Investors still trust London’s market for solid and safe real estate investments
- The weakening pound has allowed more foreign buyers to break into the London market
In the months since Brexit passed, the future of London’s real estate market has grown increasingly more clear. While findings indicate the market did, indeed, take a hit, London still remains one of the most desirable luxury real estate markets in the world. “The doomsday scenario envisioned by some observers has failed to materialize, with initial price declines being limited to central neighborhoods that had been especially frothy,” that same article adds.
Brexit aside, the London real estate market remains one of the most solid and safe investments for parking large amounts of cash. The government appears to be stable and the city has the infrastructure, culture and industry to sustain itself as one of the world’s leading luxury markets. It also speaks to a certain degree of status; it’s a place where wealthy buyers simply must own property if they wish to distinguish themselves among the world’s uber elite.
While Brexit hasn’t exactly done wonders for Great Britain’s economy, the weakening sterling has created more interest among foreign buyers looking to break into the London market. Russian and Middle Eastern money continues to flow into London property, and brokerages remain optimistic.
Ultimately, no one likes uncertainty, particularly when it comes to buying real estate. But while nervous buyers sit on the sidelines waiting to make their next move, another camp of buyers, driven by the desire to take advantage of the weak sterling or looking for a safe haven for investment, are ready and willing to buy.
View the original article at the Observer