The Property Industry Alliance is urging the government to capitalise on the opportunities Brexit presents to the UK property industry.
- Property Industry Alliance urges the UK to focus on the positive opportunities Brexit presents
- Foreign investors account for 28% or £135 billion of UK commercial real estate investments. The PIA has urged that this must not be put at risk by Brexit
- Brexit opens a currency window to foreign investors especially those from the UAE
Bringing together leading representative bodies from the UK’s commercial property industry, the Property Industry Alliance (PIA) is urging the Government to consider the real estate industry when formatting its Brexit deals, highlighting that while Brexit poses some risks, it does also present opportunities to shape the real estate industry for the benefit of the UK.
Bill Hughes, Chairman of the PIA, commented: “The UK asset management industry is one of the largest in the world and a key contributor to the UK economy. Within it, real estate is a core investment asset for private and professional investors, both domestic and global. The ability of the industry to continue to undertake cross border activity from the UK is crucially important.”
With foreign investors accounting for 28% of UK commercial real estate investments, more if housing and student accommodation are included, overseas investment in UK commercial real estate is a highly significant driver of GVA and productivity.
Foreign property investment could be set to increase post-Brexit, as the plummet of the sterling exchange rate has rendered UK property investments significantly less expensive to foreign investors, especially to those buying from the UAE, who are able to make savings of up to 20%.
Should the government take the right steps to handling the post-Brexit property industry, 2017 should see an increase in the number of foreign investments, as well as increasing number of investors partnering with their UK counterparts and other organisations to ultimately drive the UK economy.