Commercial Property Market Fights Uncertainty – Property Owners Insurance
Will Brexit cause problems with the Irish property market? Experts think it will be some time before any long-term effects can be certain.
Deals will certainly be put on hold and prices may be renegotiated.
Before the Brexit referendum, it had been thought that financial services companies in the City of London might move to Ireland to get access to the EU. It may happen in the short term, there is likely to be little movement in the years ahead. It would most likely be restricted by a lack of office space and housing in Dublin. Also finance houses would more likely relocate to Paris or Frankfurt.
The exchange rate will be bad for tourism and hit the hotels market. Hotelier Dalata plunged on yesterday’s market, by 14.4pc in Dublin to €4.16.
JLL Ireland chief executive John Moran said:
“There may be some short term upside in terms of corporate activity and relocations but this may be counter balanced by medium term uncertainty and damage to our export economy and therefore growth. The biggest risk to the Irish market is a period of paralysis and lack of activity, however we believe the probability of this occurring is relatively remote,”