Brexit Briefing: The Impact

on European Real Estate

The Impact on European Real Estate
The Impact on European Real Estate

20 July 2016, by Alice Marwick

Return to Quality

Summary

■ The decision of the UK to leave the European Union on the referendum of the 23rd of June has thrown Europe into unchartered territory. While Brexit is likely to have profound political implications for the EU, our economists expect the European economy to be rather resilient.

■ Government bond yields have dropped in the major economies in Europe, reflecting the risks in future economic growth, while global stock markets remain volatile. Against this backdrop income returns of prime European real estate still compare favourably and we believe that it will continue to attract investor interest.

 

■ We expect to see a return to quality, with prime assets in the German cities, Paris and the Nordic capitals in most demand. We believe that the secondary markets are more exposed to negative impact, weaker demand and price corrections.

■ In addition, some of the cities that are competing to attract a share of the banking sector activity, such as Paris, Frankfurt, Amsterdam, Dublin and even Madrid, could experience some positive effects on their office occupational and investment markets.

Articles from 'Brexit Briefing: The Impact on European Real Estate'

The Impact on European Real Estate

Investors are expected to focus on quality assets and sound fundamentals

 
 

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Lydia Brissy

Lydia Brissy

Director
European Research

Savills Margaret Street

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Eri Mitsostergiou

Eri Mitsostergiou

Director
European Research

Savills Margaret Street

+40 (0) 728 205 626

 

Alice Marwick

Alice Marwick

Associate
European Research

Savills Margaret Street

+44 (0) 20 7016 3833

 

Marcus Lemli

Marcus Lemli

CEO Germany / Head of Investment Europe
European Investment

Savills Frankfurt

+49 69 273 000 11