One man`s loss is another man`s gain, as the saying goes, and so it seems to be the case for Brexit. As Britain prepares to suffer an outflow of jobs from its capital over the coming years, Europe, and one city in particular, looks set to reap the benefits: Frankfurt.
Already a thriving financial hub, Frankfurt has so far emerged as the destination of choice for London banks looking to relocate staff in order to continue serving European customers after the U.`s EU exit.
The trend is surely a win for a city at the heart of the union. But it has also raised concerns about its ability to cope with the sudden surge in population, and nowhere will this be more acutely felt than in its housing market.
In November last year, Deutsche Bank predicted that 5,000 new residents could be expected to settle in Frankfurt as a result of Brexit-related job moves. Then, in early 2017, as Brexit discussions gathered pace, the German bank reported an almost 12 percent rise in Frankfurt property prices as the market finally awoke from a financial crisis-induced lull and supply limitations took hold. Its rate of growth was almost double that of the country`s other major cities.
Today, the number of Brexit relocations is likely to be closer to 8,000, and rising, according to August research from German bank Hebala. Citigroup, Goldman Sachs and Standard Chartered are among the institutions to confirm that they will be upping their staff numbers in Frankfurt. Indeed, just last week, Deutsche Bank`s chief executive John Cryan said that more so than other Brexit beneficiaries, such as Paris and Dublin, Frankfurt is the "only one European city" which can fulfil the structural requirements to match London.
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