What Brexit Means for Miami – The Real Deal

June 24, 2016

After Britains escape from the European Union, and failed attempts to jump back in, world markets have been in free fall. After questionable results in UK’s market and certain symbols which show that economic trends will be shifting.

With an expected decline in mortgage rates, among other things, and an unlikely shirinking spread between bond yields and commerical real estate cap rates, property prices should fall. It makes more sense to yield 5% on a bond that buys an office building with a 4% cap rate. For this exact reasons, many analysts have claimed a rise in Miami’s real estate.

On top of rising and falling rates, we have the image that London portrayed for the UK, which is now at question. A collapsing pound, which could mean turmoil and uncertainty over Londons future with Europe will surely decline London’s property market. Having been a city to attract much international interest, the country now seems a bit more nervous about bringing in investors in the property market. A lot of the international investors flocking to London will now consider other cities, like New York and Miami. 

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