Institutional investors are looking to reduce future investment in UK real estate as a result of Brexit, according to Preqin.

The data analysis company found that 57% of global institutional investors with exposure to real estate expect to invest less in the next 12 months than they did during the previous period.

“It is clear that institutional investors are adopting a wait-and-see approach to the UK real estate market in the wake of the Brexit vote,” said Andrew Moylan, Preqin’s head of real estate products.

“Already in the wake of the referendum, a number of UK-focused real estate funds serving retail investors have suspended withdrawals following a high number of redemption requests, and the results of this study suggest that the level of institutional capital entering the UK property sector also looks set to fall as a result of Brexit.” 

In the wake of Britain’s vote to leave the European Union, Preqin surveyed over 90 institutional investors with exposure to UK real estate.

Only 11% said they expected to invest more than in the previous 12 months.

The findings were more positive for the UK market over the longer term. Although 32% of respondents expect to invest less in the UK over the longer term as a result of Brexit, the majority (55%) do not expect it to affect their approach to the UK market, and 13% anticipate allocating more capital to the country.