Economics
BOE Warns Disorderly Brexit May Halve Commercial-Property Prices
- That’s a bigger drop than after the global financial crisis
- Slide limited to 27% on a ‘disruptive’ Brexit, BOE says
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A disorderly Brexit could cause U.K. commercial-property prices to fall by even more than after the global financial crisis, the Bank of England warned.
Prices of offices, warehouses, malls and hotels could drop as much as 48 percent if the U.K. crashes out of Europe without a deal, more than the 42 percent peak-to-trough decline following the 2008 global crisis, the Bank of England said in its Financial Stability Report. In a “disruptive” Brexit, the slide would be limited to 27 percent, the central bank said.