The political and economic uncertainty caused by Brexit has not put off foreign buyers purchasing commercial property in London.
Sales so far in 2017 for retail and office properties in the West End and the City have been worth £16.37 billion according to data compiled for the Evening Standard by property agents Cushman & Wakefield. With several deals not yet completed, it is expected that total property sales in the region will exceed the £16.96 billion spend on London commercial property in 2016.
Most of the demand is from overseas funds, but UK investors are still buying London property. Regus Keane of Cushman & Wakefield commented:
“Whilst the recent budget changes to commercial real estate capital gains tax have been unwelcomed by investors, it does bring the UK in line with the majority of other jurisdictions, and it is expected that London’s appeal will outweigh these concerns in 2018.”
After Britain leaves the European Union the London should still be regarded as a safe business haven, with its strong legal structure plus the weak pound. Companies remain optimistic about trading in the UK and this means that the commercial property market should remain in a healthy state.
The UK is the largest commercial property market in Europe and should remain so after Brexit. There is a wide range of lenders who offer commercial mortgages at low interest rates for UK investors who want to purchase property in London or other UK regions.