Property investors around the world are deeply concerned about the industry’s prospects if the UK leaves the European Union, a poll has found.
A poll, carried out by FTI Consulting on behalf of law firm Nabarro between April 21 and May 10, found the majority of 302 investors, developers and advisors with portfolios worth more than £350bn were pessimistic about a Brexit.
Investors were particularly worried, with 68% saying they would be pessimistic in the event of a Brexit, and only 11% saying they would be optimistic.
Developers were slightly less downbeat about a Brexit, with 51% saying they would be pessimistic and 23% optimistic.
However, if Britain remains in the EU, property investors, developers and advisers would be positive about prospects for UK real estate, with 68% of those polled saying they would be optimistic, 5% saying they would be pessimistic and the remainder neutral.
Nabarro senior partner Ciaran Carvalho said: “We have seen a marked increase in the number of contracts which include clauses to protect the position of buyers investing in UK real estate ahead of the European Union referendum.
“Brexit is a leap into the unknown. Brexit clauses are a pragmatic, legal response to that uncertainty.
“Some have suggested the real estate market is pausing ahead of the vote, but we are seeing plenty of deal activity. While some investors are holding back, there are many who see a slight softening in the market and less competition as an opportunity to buy.”
The UK-based participants in the poll were engaged across the property world, with 79% engaged in the office sector, 64% in retail property, 52% in residential, 40% in industrial, 37% in hotels and leisure and the remainder in logistics, student housing and healthcare.
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