London – What does the Proposed referendum on United Kingdom membership of the European Union for the property market – Süddeutsche.de

• After Proposed referendum on United Kingdom membership of the European Union banks could many thousands of shifting jobs from London to other European cities.
• The shares of construction and real estate companies are currently among the biggest losers on the London Stock Exchange.

by Benedikt Müller and Meike Schreiber , Frankfurt

What could come to the City of London in the next few months, will at Twitter already referred to as” Brexodus “: After the British population has a majority in favor, the to leave the European Union, banks could displace many thousands of jobs from the Thames in other European cities.

the German bank as announced a few weeks ago to retrieve a portion of their investment banker in the event of Brexits from London to Frankfurt, wants to wait for the exit negotiations now but initially. Even American banks could no longer benefit from their transactions are automatically recognized throughout the EU if they have only its registered office in London to an outlet of Great Britain. They are therefore likely to expand operations in continental Europe, as soon as it comes to the Proposed referendum on United Kingdom membership of the European Union.

Börse Conducts fears anticipated

However, when many high earners leave all at once a city that is always bad news for those who have invested in the housing market. The British Treasury had warned before the referendum, in the event of Brexits London property could lose by ten to 18 percent of its value. Now there are signs that the hot housing market on the Thames is actually cool. As the London newspaper Financial Times reports, pushing potential homebuyers currently on their decisions. One reason is the economic uncertainty. Another is the hope, your dream property could be much cheaper even in a few months.

The market accepts these fears already anticipated. When the decision was announced for the Proposed referendum on United Kingdom membership of the European Union on Friday morning, were the shares of construction and real estate companies the biggest losers on the London Stock Exchange. The housing company Redrow about lost in the night of the referendum 76 percent of their market value; Meanwhile, the price loss has decreased to 34 percent. Similarly, it is the competitors Bovis Homes fared. Analysts at investment bank Liberum expect construction companies that specialize in expensive real estate around London, are among the biggest losers of Brexits. The demand of high earners threatens to break.

Higher land transfer had cooling initiated

This seems a years of boom coming to an end. Since the financial crisis, homes have become more expensive every year by eight to 13 per cent in London. More and more Londoners complain that they living in their city can no longer afford. Due to the low interest rates in Europe and the US international investors, especially from China and the Gulf States, have invested billions in the market. Properties in London were seen as a safe haven, due to lack of alternatives. Now this price bubble threatens to burst. Already in the spring had indicated that the prices of new apartments in London this year are likely to fall – for the first time in many years. A higher real estate transfer tax was introduced, the cooling, now stun the surprising “no” to the EU

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But what breaks away in London, will then settle in other cities. “The withdrawal of Britain represents the German real estate market remains a major challenge,” says Andreas Mattner, President of the Central Real Estate Committee. “International investors could now increasingly look also at the German locations for new opportunities.” So hopes about the considerably smaller financial center Frankfurt, getting hit with the part of the business of the Thames. This would stimulate demand for real estate in the Rhine-Main area further. Even if only two percent of London’s financial workers would move to Frankfurt, the Property Colliers reckons, would increase the number of bank employees there by eleven percent. But where are they all live

Already Frankfurt is built very close?. As the European Central Bank hired around 1,000 new banking supervisors from many different European countries and a half years ago, the housing market could absorb halfway. But now the financial center is hoping to ten times its. Neighborhoods such as Ostend, which are not yet so far as fancy could further revive; but it also threatens further displacement of locals. Already, the rents with the exception of Munich in any German city are as high as in Frankfurt, reported the research institute Empirica. Frankfurt families compete fiercely for places in day care centers, schools and football clubs. For the city as for the real estate industry of “Brexodus” becomes a challenge.

However, is still far whether the financial center of Frankfurt would be really the big winner. Finally, the city of Paris recruits among banks for settlement on the Seine. Dublin interventions could benefit from the fact that the list language is also spoken – and the regulatory framework for banks is similar to that in Britain. The location-competition for the bankers has long flared up.