Frankfurt loses

U.K. Real Estate Market Shrugs Off Brexit

property
Many people thought the sun had set on London's commercial real estate market after the Brexit vote.
  • Why it matters

    Why it matters

    Smaller financial centers such as Frankfurt, Paris and Dublin had hoped to cash in on Brexit and had been courting international companies with European bases in London.

  • Facts

    Facts

    • Real estate brokers say there is no evidence so far of the hoped-for boom in the Frankfurt commerical real estate market.
    • Big non-E.U. investors, especially Asian funds, are expected to continue to invest in London because its real estate market is so liquid.
    • Analysts warn that the whole European real estate market will suffer if Brexit talks are fractious and protracted.
  • Audio

    Audio

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Last weekend British Prime Minister Theresa May finally set a date for Brexit talks, announcing that the formal negotiation process will start by the end of March 2017, which would put the country on course to leave the European Union by summer 2019.

One of the big questions now is whether the exodus of banks and financial services firms from London to Frankfurt, predicted by scores of real estate analysts following the June 23 referendum, will materialize.

Property owners and investors in the German financial capital, which has been trying in vain to escape from London’s shadow for decades, are hoping for a mass migration that will trigger a boom in the city’s office and residential property market.

But the early euphoria following the Brexit vote has evaporated, according to participants at the Expo Real real estate fair that started in Munich on Tuesday.

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