Almost three weeks out from the Brexit, the initial uproar has died down, a surprise candidate is taking over Cameron’s seat as prime minister – Theresa May, first female PM since Margaret Thatcher herself – and actual repercussions are beginning to be felt.
So now that we’ve had a moment to feel the shockwaves from Britain’s shocking decision to separate from the European Union reverberate across the pond, how will this affect the US…specifically, the real estate market?
Brick Underground’s excellent coverage can be summarized thusly – this is not necessarily bad news for the states, particularly for New York City’s luxury market. NYC is now positioned as a safer spot to park investments than London, although the diminished pound will almost certainly mean fewer Brit neighbors across all levels of rentals and sales.
Courtesy of the New York Post, a useful little roundup of sound bites from industry insiders; particularly notable is the following from Eric Hadar, the chairman of Allied Properties:
“Global wealth has been transitioning to safe havens such as ultra-luxury New York real estate for the past 5-7 years. The more important question is the impact [the weakening pound] will have on tourism, a far more significant source of demand for the New York real estate market than flight capital.” (via The Post)
Similar sentiments of ‘less tourism, more investments, but no huge changes or worries overall’ are echoed in this DNA Info piece, whilst pointing out that more foreign investment purchases could very well drive prices up for buyers overall, not just at elite property levels.
However: many experts are cautiously pointing out that beyond mere predictions, it’s too soon to tell what lasting effect this unprecedented event will have on global markets overall…stay tuned!