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Prime London Office Values May Fall 20% This Year on Brexit

  • Values have already declined by 5% to 10% from peak level
  • Business rate tax increase in April will add to occupier costs
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Jim O'Neill Says Brexit Economics Not Given Much Thought

Updated on

Central London office values will probably fall as much as 20 percent this year as the economy slows and investors are deterred by uncertainty in the face of the U.K.’s exit from Europe and increased business rates, according to Deutsche Bank AG’s asset management unit.

Spending on properties in the British capital slowed sharply before and after the June 23 Brexit referendum as investors and occupiers shunned the market, Simon Wallace, head of research for Deutsche Asset Management Europe, wrote in a report Monday. He predicts the trend will continue this year, with values declining by 15 percent to 20 percent.