Brexit Benefits New York City’s Real Estate Market

Brexit Benefits New York City’s Real Estate Market

In the 12-month period ending in June, foreign investors spent $25 billion on New York City commercial real estate, compared to just under $25 billion in London. Investment in the City of London decreased 36% year-over-year.

brexit

In previous years, London’s commercial real estate market was intensely bolstered by foreign investors. One organization, the Qatari Investment Authority, purchased The Shard, Harrod’s, Canary Wharf, and a quarter of real estate in London’s elite Mayfair neighborhood.

The British exit from the European Union is having serious ramifications for the real estate market in London. Many firms which chose a London office for access to the E.U. market are leaving for Frankfurt, the German financial hub. Other companies are transferring to Berlin, Amsterdam, Dublin, or Luxembourg. Frankfurt is the primary choice due to its superb infrastructure, convenient location, and comparably low property prices.

Before Brexit, New York City and London were on equal footing, as both enjoyed reputations as international cities and financial hubs. New York City is benefitting from decreased interest in the London market, as seen in the statistics provided above. As investor interest in London’s real estate market continues to shrink, New York City is poised to become the undisputed king of the hill. The City of London will hurt as its economic market shrinks from the European Union to the United Kingdom. New York City remains tightly woven into the fabric of the United States.

Cosmopolitan Capital Funding prides itself on a holistic understanding of real estate markets in the United States. Let our knowledge work for you. Connect with Cosmopolitan Capital Funding today and learn how we can serve your real estate financing needs.

Sources:

NYC overtakes London as top city for global CRE investment
Frankfurt tries to tempt the bankers fleeing a post-Brexit Britain

Author: Chris Kelly

Christopher L. Kelly is the Chief Executive Officer of Cosmopolitan Capital Funding, LLC, responsible for the operations and management of the company and reports to the Board. Mr. Kelly has specialized in mortgage banking for over 30 years. During his career he has acquired experience in effectively all aspects of the mortgage banking business.