The U.K.’s decision to leave the European Union has a potential ripple effect to as far as overseas markets such as the property sector in Orlando, Fla. Despite the city's housing market recording an increase in home sales and prices in 2016, the Brexit vote poses risks to the local sector.
Aside from real estate, the tourism sector is another market that could be affected post-Brexit, according to Justine Assal, the organizer of the annual BritWeek celebration in Orlando.
On June 23, 52% of eligible British residents voted in favor of exiting the European Union, which is a slight lead over 48% of votes opposing the idea. The impact of the decision sent shockwaves through the country’s stock market, with the British pound plummeting more than 11% from the night of June 23 into the morning of the following day.
For local residents in Orlando, the weakening of the pound against the U.S. dollar can have dire consequences such as a spike in the cost of vacations in the city, including more expensive hotel room rates.
Further, several U.K. companies have exposure in the city’s real estate market, which means a continuous drop in the British currency makes houses more expensive in Orlando.
The timing of the vote also occurred at a wrong time, as the Orlando Regional Realtors Association reported that home sales in the city rose 7% in May, while the median price climbed 12% to US$203,000 in the same month.
Commercial Real Estate
In spite of the negative effects of the Brexit vote, you can still manage property investments wisely. Masters Realty Property Management noted that property managers in Orlando could help buyers and sellers in making a decision in terms of real estate ventures amid the crisis in the U.K.
An article in Orlando Business Journal added that human touch serves as the most important factor when dealing with commercial properties, as having highly experienced professionals can make a significant difference.
As the U.K.'s decision to leave the EU continues to affect different industries around the world, it may be a challenge to invest in real estate in Orlando. As such, you'll need all the professional help you can get.