Brexit has cast a shadow on the local economic situation as the sharp drop in the value of the pound sterling stimulated investors to buy residential units in new deals at attractive prices, while some economists considered that the investment situation in the United Kingdom is uncertain, which prompted a foreign bank to freeze mortgage loans to buyers and some investors withdrew from commercial deals.
The real estate market in the British capital, London, is attractive to foreign investors, whether luxury homes or famous commercial properties, which pushed prices in the capital to rise sharply.
The real estate market in the British capital London is attractive to foreign investors, both luxury homes and famous commercial properties, which has pushed prices in the capital to rise sharply. On the part of British investors, the current uncertainty may be a reason to refrain from real estate deals, although real estate is widely considered more profitable than other safe assets due to the lack of supply.
The current uncertainty may be a reason to refrain from real estate deals, even though real estate is widely considered more profitable than other safe assets due to the lack of supply.
According to Paul Firth, head of real estate at law firm Irwin Mitchell, a US private equity fund's purchase of a regional shopping center worth more than £30 million ($40 million) after the Brexit vote has been postponed for at least two months until markets stabilize.
According to Paul Firth, head of real estate at law firm Irwin Mitchell.
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Firth added that "a number of deals that I know of have failed or have been postponed until the new situation stabilizes."
According to June research by real estate services firm Cushman & Wakefield, commercial real estate investment in Britain reached £10.7 billion in the first three months of 2016, down 28% from the same period last year and the lowest quarterly volume since the second quarter of 2013.
According to June research by Cushman & Wakefield, the volume of commercial real estate investment in Britain reached £10.7 billion in the first three months of 2016, representing a decrease of 28% from the same period last year and the lowest quarterly volume since the second quarter of 2013.
There were also signs that the fallout from the decision to leave the bloc is benefiting professional investors such as private funds at the expense of homebuyers who may suffer due to economic conditions.
Singapore's United Overseas Bank has temporarily suspended mortgage loans to buy units in London, and other Asian banks have warned of potential investment risks.
Observers believe that the sharp fall in the value of the pound following Brexit is offsetting some of the impact of tax increases implemented in April that raised the cost of buying property, especially in central London, a favorite area for foreign buyers, and there are signs that this is already happening in the luxury real estate market.
"We have completed a number of sales," said David Adams, a director at John Taylor, a luxury real estate agent, predicting more demand from the Middle East after the end of Ramadan for properties worth between £2 million and £6 million.
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David Adams, a director at John Taylor, a luxury real estate agent, said
