Up to half of planned commercial developments in central London could be delayed over the next few years due to concerns about Brexit, and overall investor returns will be flat in 2016, estate agents Savills said on Tuesday. Commercial property was one of the first sectors to be hit in the immediate aftermath of the June 23 public vote to leave the European Union, with investors pulling cash out of funds and forcing many to be temporarily suspended.
Savills said that across Britain there could be a decline of up to 40 percent from 2017 until 2021 in development activity of retail, office and industrial property, with up to 50 percent delayed in central London. “This would definitely be Brexit-related – a mix of lender, developer and occupier risk-aversion,” Head of Commercial Research Mat Oakley told Reuters.
Read more: Economic Times