The world of real estate has been going through the recent Brexit debate(s), with dozens of campaigns trying to break down the difference between leaving with a deal or no deal and the effects each scenario would have on buying/selling properties.
Brexit, being a complicated matter, is very likely to impact a lot of sectors, including real estate. Let’s analyse the matter in more detail.
What Will Happen
Everything in regards to Brexit is still pretty much still coloured in grey. As of today, there’s not even a clear decision on the fact that Brexit will actually happen after the elections on the 12th of December. One thing’s for sure, though: the fact that Brexit will highly impact the real estate sector, especially the buying and selling process for small properties. It has been mentioned multiple times how locations like Manchester and Liverpool, which went through a vast property development plan in 2017 and 18 will highly suffer from the eventual no-deal scenario, with a net influx of properties’ prices of 20% within the first 8 months.
Also From A Technological Perspective
As many of you may know, real estate has gone through a considerable number of changes in the recent past, technology-wise.
The usage of different online portals, apps, or even pieces of software has drastically changed the world of real estate as we know it. With Brexit, we can safely say that there will be more and more changes on this very matter: GDPR, for example, which has limited a lot of marketing-related strategies, will definitely be removed and therefore will allow, effectively, the usage of big data-driven strategies. Is this an opening for another Cambridge Analytica scandal? Time will tell, but, for now, the technological side of Brexit applied to properties and the whole real estate sector is definitely tangible.
From A to Z
The problem with Brexit is that, whether in case it will happen with a no-deal scenario, this will most likely impact the real estate sector as a whole, in all its processes. For example, being able to build a simple property, due to the lack of materials, very likely to become more expensive after Brexit, could impact not only the buying and selling process but even the mere, actual commercial property management and building.
With this in mind, there are dozens (if not hundreds) of companies which are already putting together crash strategies in case of a no-deal scenario, stacking up materials for productions and analysing the market value for properties which are going to be completed after the (hypothetical) Brexit date.
It’s important when analysing Brexit to keep every conclusion as politically-free as possible. Being, naturally, a political matter, it’s kind of complicated to keep the two worlds separate, but, by reading the business insights provided via Forbes UK and Inc, we can safely say that, in case of Brexit, there will definitely be some dark times for the real estate and property sector.