Brexit Impact on European Real Estate
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.
- 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.
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