Economic worries, as a result of the UK’s decision to leave the EU, have not affected investment property prices at the lower end of the market, according to Birmingham-based specialist real estate asset management company Blue Marble Asset Management (Blue Marble).
Tim Matthews, Chief Executive of Blue Marble, says that in the £1 – £5 million commercial property lot size, vendors have not adjusted their price expectations post-Brexit.
He says: “We are aware of a number of commercial property transactions which have fallen out of bed using Brexit as an excuse, but as far as we are aware none of these properties have subsequently gone under offer at a reduced price. Vendors are remaining resolute in the value of their properties.
“It is important to remember that we are still firmly in the summer break, so this may change when the holidays are over in September and deal volumes increase. However, there are many of the opinion that private investors will still be as keen to invest in property as they were before the Referendum, and as a result prices may actually increase in the next six months.
“As ever, the key issue will be whether occupier demand remains strong as this will undoubtedly fuel confidence amongst investors.”
Blue Marble continues to be active in the commercial property market. Earlier this month (August 2016), it acquired two mixed use investment properties in the West Midlands at a net initial yield of 7.25 per cent.