With the shocking news breaking that the United Kingdom has voted to leave the European Union, many New York businesses who transact business internationally, or who cater to an international clientele here at home are left to wonder what Brexit means for them. For the real estate market, the effects are probably the easiest to sort out.
We have had many real estate and corporate clients contact us requesting advice on the effect the U.K. leaving the E.U. will have on their business in New York. We will be writing about this issue over the next couple of weeks here and, also, on our sister blog at: The Korean Law Blog.
First, don’t expect an interest rate increase this summer because the volatility created by this unexpected news means that the Federal Reserve will want to keep rates as consistent as possible. So if your New York business has interest in purchasing real estate, you should see a stable interest rate through the summer.
But, expect some more competition in New York from outside the nation. A stronger U.S. dollar means that businesses from overseas will be turning their eyes to America as a safe haven for investment. So while interest rates will remain stable, residential and commercial real estate in New York will see increased interest from overseas businesses, which may mean increased purchase prices.
The dust is still settling on Brexit and its impact in a lot of markets. For New York real estate, it’s time to get ready for a slight increase in business and competition from overseas.
For more information on the potential effects of the United Kingdom leaving the European Union, please contact one of our attorneys. Our attorneys work with MBAs, accountants and former executives from leading multinationals – our law firm is forming a team to study this issue. Please check back soon.
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