Brexit Could Lower London Office Values By 20%
Investors are looking to unload prime London office real estate on fears that the UK's property market will tumble as Brexit starts to take form.
Deutsche Bank AG’s asset management unit predicted prime London office values will drop between 15% and 20% this year, largely because the future relationship between the UK and the European Union remains in doubt, Bloomberg reports. Rising inflation is also expected to hurt private consumption and slow the economy, which experts said could further deter investors from entering the market.
London office investment dropped 17% last year while vacancy rates climbed, and international businesses are already planning to move up to 100,000 jobs out of London in anticipation of the UK losing access to the EU's single market.
