What Brexit Could Mean For Hamburg
This year Europe has been dominated by one issue, the decision of the United Kingdom to leave the European Union through a referendum. While most of the focus has understandably been on how the UK will be affected, the other nations and cities of Europe have been examining how Brexit will affect them. In this article we will look at the implications of the vote on Hamburg.
While most of the news surrounding Brexit has been negative, cities such as Hamburg could see a few benefits of the referendum decision. The Financial Times (FT) reports that Hamburg is one of several European cities that could capitalise as London based firms consider moving operations to Europe.
The paper states that while Berlin and Frankfurt would be more obvious choices Hamburg offers a high quality of life and strong infrastructure. Hamburg was also voted as the second best European city to invest in behind Berlin. The FT also adds that it is quite a bit ahead of London.
This is in part due to the emergence of the technology sector in Hamburg. Facebook has its German headquarters in the city and over 500 start-ups have been founded in the past four years. Coupled with the city due to expand by 40%, it is looking like a healthy and viable alternative to London or indeed Berlin.
FTSE Global Markets states that Hamburg is also high on the commercial real estate investment numbers after the Brexit vote. The website explains that £1.4bn has already been pulled out from UK property funds in the aftermath of the vote with Hamburg and Dublin coming out as potential European cities for real estate investment.
There is also good news for citizens of Hamburg travelling to the UK for a holiday. The Economic Times report that London just got cheaper for tourists with the drop in the value of the pound affecting everything from consumer goods, to hotel rates. The price of luxury goods has also fallen making one of the world’s most notoriously expensive cities affordable. Unfortunately the pendulum doesn’t swing the other way and Parking4Less in their blog post ‘What Could Brexit Mean for UK Travellers’ states the price of airfares leaving the UK will be higher while the pound won’t go as far abroad. So while there could be a huge influx of tourists in the UK don’t expect as many to be visiting Hamburg.
None of this will matter of course as the final outcome of the UK’s vote to leave the EU has yet to be fixed and there are signs that it might not even go ahead. What won’t change is that Hamburg is one of Europe’s fastest developing cities for future investors.
This is a guest contributed post from David Thompson.