Even before news of a Brexit made its way around the world, high-end brokerages and developers throughout London were already getting inquiries on behalf of foreign buyers hoping to take advantage of the tumbling pound.
The significance of the British exit from the European Union was not lost on anyone. There was an immediate financial impact, as markets took a dive, and there will certainly be many more implications in the days and weeks to come.
Here is a look at some of the predicted winners and losers in the real-estate arena.
WINNERS:
Foreign buyers of London real estate will get increased value in purchasing properties as a result of a depreciating sterling. “This will now create a short-term buying opportunity for U.S. dollar- and euro- based property investors,” said Peter Wetherell, chief executive of Wetherell, a Mayfair-based broker. “For overseas buyers, this big and dramatic drop in the value of sterling will effectively offset the Stamp Duty and tax adjustments and it will make prime London property a lucrative investment for overseas investors bold enough to take a punt despite the market uncertainty.”
LOSERS:
London-based property buyers will face competition from foreign purchasers in addition to dealing with the uncertainty of their own local economy. “A fall in London house prices caused by a Brexit in the long [run] will not benefit many domestic buyers, for example, if a Brexit causes — as predicted by many — wide-ranging job losses and a general slowdown in the economy,” said Martin Bikhit, Managing Director of Marylebone estate agent Kay & Co.
source: Market Watch
