The consortium of sector trade associations and research bodies – including INREV, EPRA, ALFI, ZIA, ASPIM, LUXREAL and IVBN – have identified six major challenges for the European real estate sector posed by Brexit which policymakers on both sides of the Channel must be mindful of. Here are the second three:
- Maintaining the momentum on existing initiatives: “While it is inevitable that significant resources and attention will now have to be devoted to the renegotiation of the UK’s relationship with the EU, this must not be allowed to derail or delay policy initiatives designed to boost private investment and generate growth that
arealready envisaged. The case for a Capital Markets Union (CMU), removing barriers to cross-border and long-term investment (including to real estate through the public markets) and reviving securitisationmarkets (including for commercial real estate debt) remains strong. For the real estate investment industry, the CMU has always been both European and global. The imperative to tackle obstacles to cross-border investment and market access, and to facilitate the flow of capital within the EU and between the EU and the rest of the world remainunaffected by the UK referendum result.”
- A transparent and open process: “It is imperative that investors have the maximum possible clarity and certainty about the next steps. It is time for a clear roadmap to be agreed by the EU and the UK and communicated to stakeholders. This must include clarity regarding the scope of the negotiations and provide for appropriate stakeholder involvement.
- Securing the skills base: “Professional services are at the heart of Europe’s economy and our future growth in this sector is dependent on our ability to import and export — or passport — such services throughout
the Europe. The mutual recognition of qualifications and the development of common technical standards have reduced the barriers to cross-border services provision. These common approaches have also meant that European businesses can support best-practice in environmental, financial and social standards. Maintaining access and developing talents are critical to ensure the growth and competitiveness of the sector.”
The consortium added in its open-letter:
“Real estate investment makes a significant enabling contribution to economic activity, growth and job creation and helps create