One winner in Brexit turmoil: London homebuyers

Prices dropped the most in a decade as uncertainty over EU exit leads worried sellers to cut asking prices

TRD NATIONAL /
May.May 18, 2019 09:00 AM
(Credit: iStock)

(Credit: iStock)

Uncertainty over Brexit is helping turn some of London’s prime neighborhoods into true buyers’ markets.

Home prices in some of the city’s most sought-after districts fell by the most in a decade during the first quarter as worried sellers cut prices in order to find buyers, according to Bloomberg. That led to a sharp rise in transactions as buyers flooded the market looking for deals.

With British politicians unable to agree on a way to formally exit the European Union, almost half of sellers of homes under 2 million pounds ($2.6 million) were cutting their asking prices before finding buyers, according to data from LonRes cited by Bloomberg. Buyers got an average 13.4 percent discount on properties in the area known as prime central London, the data showed.

Properties over 5 million pounds saw prices decrease 6.6 percent and sales rise 3 percent in the first quarter year on year, the first gain in more than a year, the data show.

The situation in London is just one of the wide-ranging effects of the Brexit turmoil on real estate in Europe.

As the U.K.’s struggles to exit the E.U. continue, financial industries are moving shop to the Irish capital of Dublin, fueling a property boom that lenders and investors want to cash in on.

In Frankfurt, prices for office properties have increased to record levels on speculation that Brexit will lead professional talent and financial capital to relocate to Germany. [Bloomberg] — John O’Brien


Related Articles

arrow_forward_ios
French buyers are gobbling up prime London real estate

French buyers are gobbling up prime London real estate

French buyers are gobbling up prime London real estate
Opendoor CEO Kevin Wu, Daniel Morillo and Ken Griffin (Getty; Opendoor; LinkedIn)

Opendoor hires CIO from Ken Griffin’s Citadel

Opendoor hires CIO from Ken Griffin’s Citadel
(Getty)

Manhattan rents fall below $3,000 for first time since 2011

Manhattan rents fall below $3,000 for first time since 2011
Data on third quarter CRE investments suggests a nationwide improvement, but Manhattan has been slow to recover (iStock)

NY falls behind Dallas, LA in CRE investment as deals surge nationwide

NY falls behind Dallas, LA in CRE investment as deals surge nationwide
Existing home sales rose again in September as listed inventory sunk to a new low. (iStock)

Existing homes sales remain high, but inventory is “historically low”

Existing homes sales remain high, but inventory is “historically low”
 Jennifer Lawrence and 17 Jane Street with Edward Minskoff (Getty; Sciame Construction)

Jennifer Lawrence buys at Ed Minskoff’s West Village condo

Jennifer Lawrence buys at Ed Minskoff’s West Village condo
Gov. Andrew Cuomo (Getty; iStock)

New York City lifts lockdown for some Covid hot spots

New York City lifts lockdown for some Covid hot spots
217 West 57th Street with Extell Developement's Gary Barnett and Corcoran's Pamela Liebman (Photos via Extell; Barnett via Anuja Shakya)

Extell brings on Corcoran Sunshine to help market Central Park Tower

Extell brings on Corcoran Sunshine to help market Central Park Tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...