The initial panic after the results of the Brexit vote were announced last week seems to have been over ruled by positive predictions for the Marbella property market post Brexit. Many wrongly assumed that due to the plummeting pound, that the Marbella property market would crash after England’s decision to leave the EU became public knowledge, but so far real estate agents on the Costa del Sol have seen the opposite is true.
There has been a reported increase of 30% of Brits who are now looking to leave the UK and set up home in sunnier climates, with the most researched areas for relocation being Marbella, Barcelona and Thailand. Over the past two weeks, FAB Property has seen a marked increase in enquiries from Britons wanting to invest in the Marbella property market, but the majority of enquiries are from those wanting to purchase homes in popular areas such as Benahavis, Nueva Andalucia and The New Golden Mile to live in full time, rather than for use as a holiday home.
In the immediate aftermath of the referendum the pound weakened and the markets went crazy, essentially making Spanish property more expensive for a British buyer. However it is worth bearing in mind that in relative terms Spanish property is still 32% cheaper than their peak values of 2007, so there are still bargains to be had, even with the poor exchange rate.
Brexit or no Brexit, the fact remains that property prices in Spain remain relatively low, and this is still an excellent time to make a shrewd investment in the Spanish property market. Many British citizens are extremely unhappy with the result of the recent vote to leave the European Union and they are now seriously considering a move abroad; a recent study by the London School of Economics concluded that as many as ten percent of 18- to 25-year-olds who voted to ‘Remain’ are now considering leaving the country for good. Far from being put off moving to Europe, where they are now unsure of their rights, many Brits are seriously thinking about making the move to warmer countries like Spain, France and even Italy.
Marbella Property Prices Post Brexit
Whilst it is true that the pound sterling has reached new lows this week, thus making Marbella property seem somewhat more expensive, prices haven´t actually increased. On the contrary, the month of April this year actually saw property resale prices decreasing by an average of 1.4% and whilst the British market is very important for the Spanish real estate sector, the possible effect will be offset by other markets which are greatly strengthening their investment interests on the coast, which will compensate for the fall in the British demand. For potential buyers who are at the stages of purchasing a Marbella property, the immediate effect of the reduction in the value of the pound has allowed some of UK Vendors to accept offers that a week or so ago they were not prepared to consider, for these people the result so far has been fairly positive. It is likely that the exchange rate will continue to be volatile over the coming months but will no doubt level off.