Consequences of the Brexit on the property market
How is Brexit affecting the Spanish real estate market?
Is it all bad news?
Since the past 23rd of June, when the long awaited referendum took place and the United Kingdom experienced a "Yes" in favor of leaving the EU, the pound has suffered its consequences. Consequences that occurred that same evening and that already fueled turbulences in the exchange markets. The pound dropped sharply against the dollar, reaching minimums since more than three decades ago but the euro was also affected. Against the euro the pound registered its lowest levels since November of 2013 and the great impact was for the Spanish real estate market.
The British, loyal customers of the Spanish market and lovers of our shining sun, expressed their great uncertainty regarding the situation. But how does this fall really affect the market?
The first and mainly concerned are the tourism areas such as "La Costa del Sol" and "Costa Blanca" from which numerous Spanish and British promoters obtained important benefits. With the downfall of the pound the purchasing power of the British citizens was reduced and this tourism was therefore not viewed as accessible as before.But it is not all bad news
and as they often say, everything has its positive side you just need to look a little closer. In the subsequent days following the "Yes" numerous British clients, supporting remain, portrayed their desire to leave the UK and settle in Spain. Citizens in search of luxury properties in a location with new employment prospects and an economy that is recovering rapidly. Many even consider the option of settling their businesses in Spain or embarking onto a new one. It has been estimated that the number of citizens planning on leaving the UK after Brexit has increased by 30% and this turns out to be very attractive for the Spanish property market.
Despite the fall of the pound, the investment in real estate assets in Spain is still profitable, attractive and has not been severely affected. Buying a property can be a bit more expensive but in the long run the buyers can experience benefits as the sale prices have been leveled and the exclusive and luxury areas are still in upsurge.
It is not all bad news, and it is possible to see the bright side of Brexit.The Spanish luxury real estate market could even experience benefits.