For a second consecutive month, the London commercial property market slowed in growth, despite signs of recovery after the EU referendum vote in June 2016.
It was reported that he Brexit vote last year led the businesses in the city to take more cautious approach to the market. As a result, a number of commercial property occupiers have decided to put on hold or cancel their plans to expand.
The impact of the Brexit on the city of London is already apparent. For instance, Facebook’s Headquarters property in London has already been sold at a reduced price by Great Portland.
UBS European real-estate analyst, Zachary Gauge, has offered his opinion to commercial property stakeholders. He said:
“Brexit hasn’t started yet, and I don’t think anyone really knows what the medium-to long term consequences are going to be.”
Some of the major London office space users include financial corporations who have issued warnings that they may have to move abroad if Brexit would mean preventing them from serving EU clients.
Although the final deal for Brexit is yet to be agreed, with the uncertainty, it has certainly made the commercial property market in London unpredictable.