At the time of the 2016 referendum, opinion was as sharply divided on the impact of Brexit on the property investment market as it was on the merits of Britain checking out of the Hotel Bruxelles. The Prophets of Doom prophesied doom (as is their wont); others (including us) spoke of a possible 'Brexit bonanza'. So 30 months on, is there tumbleweed blowing down Cheapside and Bishopsgate? Or are the City streets paved with gold?
While the high end residential market is undoubtedly depressed, the performance of the commercial office and investment markets seems largely unaffected by Brexit. Clearly there has been relocation of some financial services to other international hubs, but these departures have been more than compensated for by new arrivals particularly in the on-line and tech industries. Consequently, office demand and hence rents in the City remain at very robust levels and almost every day sees a major overseas investor acquiring a landmark building in the City or West End.
In summary, the fundamentals that underpin the London commercial property investment market are as strong as ever and that market is as active as ever: many overseas investors clearly believe that now is the time to take a stake in it.
