The surprise result of the UK’s exit vote has created significant political uncertainty and financial volatility. However: We believe the economic and property market impact for the United States will be relatively small.
The risk of a renewed financial market crisis is the big concern, but the financial markets have already started to come back after a rout the first two days following the vote. Brexit will not be the next Lehman moment.
JLL Research has written a report to help you better understand and navigate this unprecedented time. It covers:
- Brexit defined: What exactly happened? What happens next?
- Impact on global financial markets: Swift global market reaction and more volatility are expected, but this is unlikely to lead to a financial crisis.
- UK and EU impact: There is significant uncertainty for the UK economy and political landscape. UK property markets are in limbo, and the question now is whether the EU will see a negative spillover effect.
- Impact on the U.S. economy and real estate: The U.S. economy can likely handle this. The dollar is strengthening and the Fed will likely hold off on planned interest rate hikes. We expect property demand implications to be slightly negative across sectors, though U.S. real estate investment could ultimately see a bit of a safe haven boost.