After Brexit the values of the negotiations to buy real estate a London they fell by 5,5%. To say it is the Centro Studi di Casa.it, which evaluates the immediate impact of the referendum on the real estate market. Second Casa.it moreover, demand would have decreased by 19% in four days, and the luxury property market has slowed down, especially in top areas such as the Kensington district and the Notting Hill area. Boom in requests for houses in Scotland (+150%) from families in the United Kingdom.
"The specter of a "Brexit Bubble" on the London residential market is considered more than probable by the majority of local operators - declares Alessandro Ghisolfi, Head of the Casa.it Study Center - especially as regards the top segment of the market".
“Although in the last quarter the sales values of houses in London recorded a new growth of 9,8% - continues Ghisolfi -, Brexit has, within a few hours, brought down the values of the 5,5 percentage points. Today, houses in London are worth an average of 33 euros less than the record prices recorded 7 months ago, the average cost of an apartment is estimated at around 590.000 euros.
A drop which was also followed by the slowdown in demand: “The data recorded on the main English real estate portals – continues Alessandro Ghisolfi – show that requests for houses in London are down 19% in 4 days, while the demand for those looking for a home in Scotland, coming from families in the United Kingdom, has curiously grown by 150% in just 5 days.
“The latest data show a drop in demand for London's top areas of 2,5% in the last quarter, compared to the previous quarter – continues Ghisolfi -; a negative figure which has not been recorded for over a year and a half and which contrasts with the annual figure, June on June, which recorded a growth of 8,2%. In particular, the most prestigious urban areas of the West End were the ones most affected by Brexit: the Kensington neighborhood recorded an 11,8% drop in demand in the second quarter, followed by a -10,7% for the area of Notting Hill."
But who are the most affected by the outcome of the referendum? “Today it is certainly the shareholders of the development companies that are operating on the London market. Their shares have already suffered reductions in value of more than 25% one hour after the opening of the markets on June 24 (with the polls closed and the results acquired) – concludes Ghisolfi.”
