Demand for commercial property in the East of England from overseas has slowed as international investment has ground to a halt ahead of the EU referendum, according to an RICS report.
It also suggests the residential housing, construction and rural land markets have been hit by short term uncertainty. An RICS paper points to a steady easing in international demand for UK office, industrial and retail property since the referendum was confirmed a year ago. It says demand among international investors for commercial property in the East of England is now at its lowest level in over a year.
Some 38 per cent of RICS members in the sector cite the referendum as a reason why major international retailers and other businesses are ‘nervous of investing in Britain’. If Britain leaves the EU, 43 per cent of respondents nationally felt that it would have a negative impact on the commercial property sector. Only 6 per cent thought it would help. Rental expectations have also been scaled back.
RICS chief economist Simon Rubinsohn said: ”… despite the climate of uncertainty across all sectors surrounding the impact of Brexit, the long-term view is that we will continue to see the value of land and property assets increase, albeit at a marginally slower rate.”