How would a Grexit affect the London property market?

How would a Grexit affect the London property market?


Jul 8, 2015

London property market

 

So, will Greece exit the Euro or won’t they?

At the moment, who knows, but what would happen to the London property market if they do? Office rents are already going up at a phenomenal rate as landlords see demand for London’s office space outstripping supply. It is unlikely from a rent perspective that the events in Greece will have much of impact on this for commercial property but from an investment perspective, the fear of Greece exiting and eventually the demise of the Euro could mean that foreign investors may look even more at buying property in England and particularly in London which is already seen as a safe investment by investors from Russia and the Far East. If they do, this would most likely drive prices up even higher and the yields smaller. When prices go up so do the expectations of rent and so the likelihood is that this will keep driving rents up and up.

Where will they end up?

Who knows at the moment but at some point the balloon is going to burst and everything will have to balance out…..won’t it?

This news was bought to you by Stuart Neils, commercial property consultants and surveyors with over 40 years experience specialising in search, negotiation and project management exclusively for tenants.

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