UK commercial property values in 2016 dropped by billions after the vote to leave the European Union, according to a new report.
The Property Industry Alliance’s (PIA) latest report has revealed that commercial property values in the UK, of which retail accounts for 38 per cent, dropped 4.6 per cent in 2016 from £926 billion to £883 billion.
Commercial property reportedly accounts for around 13 per cent of the value of all buildings in the UK, and 10 per cent of the UK’s net wealth.
The decline was reportedly seen in the months following the Brexit result.
PIA chair Bill Hughes said that despite the decline, the commercial property industry was still an essential part of the UK’s economy.
“It invests in and manages the accommodation needs of retailers, businesses, distributors, manufacturers, hoteliers and many parts of the public sector,” he said.
“It also maintains these buildings and facilitates the buying, selling and letting of such property on behalf of owners. In total, these activities directly contributed about £63 billion to the economy in 2016 – representing 3.7 per cent of the UK’s Gross Value Added.”