The UK’s real estate market remains resilient as its government continues to negotiate the terms of its exit from the European Union.

Savills has reported that UK commercial property investment volumes in the first quarter of 2018 reached £12 billion (€13.6 billion), 11.6 percent down on the same period in 2017, but still 14 percent above the long-term average, prompting the company to argue that there are reasons for optimism in the UK market.

In its latest Commercial Market in Minutes report, the real estate adviser says that with inflation having slowed to 2.5 percent in the UK, regular pay growth at 2.8 percent, and low unemployment levels, it expects UK consumer confidence to grow, benefitting the retail sector in particular.

“While first quarter investment volumes are down year-on-year, it would be wrong to assume that this translates into weak investor demand,” says Mark Ridley, CEO of Savills UK and Europe.

“Taking a wider view