Many things have been said about Brexit and its effect on London – its housing market, employment, even the economy as a whole. With this, Global House Estates analysed the details surrounding the Brexit and its impact on London’s employment and commercial real estate.
Central London’s Employment and Commercial Real Estate
Many individuals believe that London, which serves as the UK’s central hub for employment and robust employment growth, will suffer from the Brexit. Tons of stories are circulating about how banks will close and relocate to other European countries with more stable economies like Frankfurt. These relocations will eventually bring with them precious employment and other job opportunities previously in London and other UK cities. When this happens, many investors will view London’s property market as too risky without the essential employments that would sustain the growing market.
However, according to CBRE research, since the announcement of Britain to leave the European Union, there has been a steady increase in the office space offering in Central Londo. This data suggests that more and more companies are, in fact, moving to London, bringing more job opportunities as a result. Contrary to the belief, businesses do not see risk. They see opportunity.
On its own, this data may be significant enough. However, taking into context the employment rates and the percentage of London’s working-age group and the UK’s employment rate of 76.1%, the highest in years, it is easy to see that London and the UK are set for growth in the near future.
The Rising Tech Industry
Understandably, the finance and banking sectors receive most of the focus from analysts. But, London’s established technology industry is something that should not be ignored. The UK brought in £6.3 billion in venture capital investments, the most in any European countries, as reported by Tech Nation. In fact, as much as 40% of tech unicorn companies, with a valuation of more than $1 billion are headquartered in the UK. This places London at the epicentre of the global paradigm shift from banking to technology innovation. Notably, tech workers in London are now 10% higher than those in the banking sector.
When you pool all these bits of information together, it is clear to see why London’s investment market has greater potential more than ever. If you put these together with strengthening market confidence and a low valued currency, now is the best time to invest in the London property market.