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Brexit Impact on European Real Estate

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European real estate prospects remain encouraging, despite heightened political risk and more uncertainty, says Monika Sujkowska, Analyst, Real Estate Investment Strategy and Research, at Aviva Investors.

Key Points:
  • Our central view is that the impact of “Brexit” on the European economy and property markets will be limited.
  • Brexit highlights that geopolitical risks are noticeable and can be badly mispriced by financial markets.
  • Given the rise of populist politics and anti-European Union (EU) sentiment, upcoming elections in major European states will be closely watched and may spark more volatility
  • We see upside potential in continental European residential markets, student housing, and offices in smaller financial centers. The weaker euro may also boost some luxury retail markets.
  • In the longer term, prospects for some logistics markets could worsen due to the likelihood of protracted trade negotiations between the UK and the EU.

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.