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Although the UK property markets are doing OK and holding their own at the moment, new data released last week suggests that the value of real estate deals involving private equity funds in the UK has seen declined a significant amount since the “Brexit” vote to leave the European Union, while deals across the rest of Europe increased London-based research firm Preqin said in a statement.

Property funds and private equity deal activity has recovered considerable as fears over the effects of the Brexit vote would cause have subsided a lot, the firm said in its Real Estate Spotlight report.

“The UK’s plans to exit the EU have the potential to create disruption to investment activity in real estate both in the UK and elsewhere in Europe,” Preqin said.

The amount of capital raised for UK-focused private equity real estate funds in the first half of 2017 fell to $2.9 billion from $3.4 billion raised in the previous six months and $3.7 billion a year earlier.

Fundraising for the rest of Europe was higher at $17.6 billion raised in the first six months of this year, $9.9 billion in the second half of 2016 and $11.7 billion a year earlier.

The aggregate value of completed private equity deals in real estate rose to $17.5 billion from $10.4 billion in the previous six months, Preqin said. The year-earlier figure was higher at about $18 billion.

In the rest of Europe, the total value of private equity deals more than doubled to $40.6 billion in the first six months of this year from $18.8 billion from the latter half of 2016.

The UK is central to the European private real estate industry. In the 10 years ended July 2017, UK-based fund managers have raised $108 billion, compared with $102 billion in the rest of Europe, Preqin said.

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