According to Morningstar, once the uncertainly with Brexit alleviates, both domestic and overseas buyers will look to deploy funds into the UK commercial property market.
Morningstar interviewed REIT managers to understand their preferred asset classes. The managers said, “there’s a lot of cash on the side-lines waiting to snap up UK property assets once certainty on Brexit is known…however, they warn the market could see some short-term pain in the meantime.”
Morningstar goes on to say, “equity investors have been vocal in putting forward their expectation of cash flowing into the UK stock market once Brexit is resolved, no matter what deal we get. While it’s unlikely to be as dramatic in property, the asset class remains more resilient than many expected.”
