The Brexit effect: The UK has now officially left the European Union. Should investors who have been waiting on the sidelines now re-enter the country?
“The deal is done.” So read the tweet from British Prime Minister Boris Johnson on Christmas Eve, announcing that a trade agreement between the UK and the European Union (EU) had been reached.
For many, this was interpreted as good news, with a potential end to the economic and political uncertainty that the UK had endured since its decision to leave the EU in 2016.
So what does this mean for the real estate market? According to Lonneke Löwik, CEO of INREV, it is still a case of waiting for the dust to settle. Investors can still invest cross-border without restrictions, and investment flows either way should not be impacted, but INREV is seeing a difference in the mindset between European and US investors towards the UK. “European investors are holding off for the moment, until the political tensions, currency volatility and uncertainty around Brexit subside,” says Löwik. “But North American investors see an opportunity in distress and dislocation, and the