RICS: Businesses consider moving overseas

Ryan Bembridge

October 27, 2016

RICS members expect some businesses to relocate due to the UK’s decision to leave the European Union, its Commercial Market Survey for Q3 2016 has found.

Seven in 10 (71%) members in Northern Ireland and half (47%) in Central London expect businesses to relocate in the next two years.

In all 14% of RICS members have seen evidence of commercial property firms looking to relocate first hand.

Meanwhile three in 10 (30%) RICS members in Poland, Germany and Ireland reported having enquiries from companies looking to relocate part of their business away from the UK.

Commercial property demand was broadly positive in Q3, with 12% more respondents reporting a rise in demand compared to 0% in Q2.

Simon Rubinsohn, RICS chief economist, said: “The negative mood in the Q2 survey reflected the fact that it was conducted in the immediate aftermath of the referendum.

“The latest results suggest that the commercial market has subsequently settled down which is broadly consistent with much of the other macro news flow that has emerged over the past few months.

“In particular the rebound in our occupier demand indicator suggests that for at least the time being, the UK economy is proving relatively resilient.

“Interestingly, the feedback we have received was noticeably more cautious in Scotland and parts of London but despite this, the RICS results do suggest that the drop in the pound is encouraging foreign investors to show interest in the market particularly in the capital.”

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