Editor: Property investors pursuing purely opportunistic strategies will be disappointed with last week’s agreed Article 50 extension, which postponed an imminent hard Brexit. Likewise, real estate brokers looking for market movement will have found little to be cheerful about given extended uncertainty (PropertyWeek.com).
Companies will also not have found any compelling cues to release cash reserves for expansionary investment in facilities, equipment or acquisitions to grow their businesses.
An organised exit is probably better than a disorganised one, but a ‘flextension’ is certainly not a game changer and may have been the worst option given the parliamentary gridlock.
In fact, the six-month extension looks to be too short for property investors to ignore the uncertainty and pursue their delayed investment plans, but too long to prevent a disruption to the final quarter of the year when property sector transactions usually peak.
Walter Boettcher, chief economist and director of research and forecasting, Colliers International