Marbella set to gain from brexit vote.
A month on from the British referendum vote to leave the EU and the dust is starting to settle as opinions are formed on what effect Brexit will have on the Marbella property market. Initial fears from some quarters that the vote would hit the resort town’s real estate sector hard have given way to a far more optimistic outlook—particularly as in the weeks following the referendum there has been a surge of interest in Spanish property from British buyers, according to several international real estate consultants. A number of reasons have been put forward for this, including a desire to take advantage of the privileges of EU membership during the two year grace period before the UK officially leaves the EU. It would appear many professionals with businesses that rely on access to the single market are not prepared to wait for trade deal negotiations between Britain and the EU, and are already investigating the possibility of relocating to Spain in order to secure their futures. On top of that, comments from the UK’s new Prime Minister Theresa May and Spanish PM Mariano Rajoy have been taken to indicate Britons already living in Spain at the time of Brexit—and Spaniards living in the UK as well—will retain residency rights. If this indeed comes to pass then there is an added incentive to move to Spain sooner rather than later—and popular coastal resorts such as Marbella are well placed to benefit. While the recent softening of the Pound against the Euro may slow what was a brisk start to the year in terms of sales to British buyers, the most serious buyers and those in the upper segments will continue to buy, especially when you compare Spanish property prices to British ones. After all, an exchange rate hovering around the €1.18-€1.20 mark is by no means particularly low on a historical basis—long term residents may well remember the time when the Pound and Euro were trading at parity. At the higher end of the property market there is optimism that Brexit will be good for the Marbella real estate sector and actually give it a boost, due to the area’s global reputation as an attractive destination with high quality luxury villas for sale and excellent leisure and lifestyle amenities. In recent years London has been one of the star performers in the super-luxury investment homes category, but even before the referendum vote there were signs that the property cycle in the city was overheating and about to enter a cooling-off period. This process looks certain to accelerate in the coming months and investors—particularly from the Middle East and Asia but also Northern Europe and Britain itself—are looking for alternatives that offer value, prospects for capital growth and an alluring lifestyle to boot—and Marbella ticks all the right boxes, as its property prices are headed in the opposite direction of London’s. Several international consultancies have recently noted significant rises in internet searches for luxury property in Marbella, particularly from the Middle East. If you are looking to join the many thousands of people who have a second home in Marbella—or perhaps would like to move here—please contact us. Altavista Property has a fine selection of villas, townhouses and apartments for sale in the area.
