The uncertainties of Britain’s departure from the European Union hasn’t stopped investors from backing the U.K.’s residential sector.
Total investment volumes in the U.K.’s multifamily sector rose by more than 150% to 6.8 billion euros ($7.6 billion) in 2018, according to a report by broker JLL. London helped lead the charge, with investment volume nearly doubling to 2 billion euros compared to 2017.
That helped the U.K. capital rise to become the fourth-biggest European city for multifamily investment, behind Berlin, Copenhagen and Paris.
Investment in European multifamily properties rose by 40% to 56 billion euros in 2018. The market has proved popular among investors because of the stable cash flow from such buildings and a shortage of supply in Europe’s top-tier cities.
Still, the U.K.’s charge may be shortlived as the uncertainty around Brexit continues to mushroom.
“Given the lack of progress with Brexit, some foreign investors have become more cautious when considering a market entrance,” JLL’s Simon Scott said in the report.