24 June 2016 | Jamie Harris
Guy Grainger, chief executive for the EMEA region at corporate real estate firm JLL, has said that the UK's exit from the European Union (EU) could result in a 'weakening in occupier demand' in the short term.
He said that the impact on rents could be limited, but uncertainty about direction and timing will 'adversely hit' real estate activity.
Grainger said: "Even if it is effectively 'business as usual' for the UK in terms of trade and legislation until 2018, such a major change will inevitably create uncertainty in the real estate markets.
"Investor sentiment may also remain subdued in the short to medium term, although a drop in sterling may provide a moment in time for some opportunistic international investors.
"For property markets, the initial correction may be most severe but should be followed by an upturn as opportunities re-emerge in UK core markets and benefits of weak sterling are recognised. Sentiment and relative pricing will be key."