It’s been six months since the June 23 referendum of 2016, when a majority of Britons decided to leave the European Union. Brexit was a significant event which sent shockwaves far and wide, much beyond the UK. It even had a major impact on the property market on the tiny island nation of Cyprus.
There are tens of thousands of British expats living in Cyprus and they were left reeling by the Brexit referendum. Suddenly, they realised that their pensions were not worth as much as they were in the past, because of the sudden fall of the pound. Many were left wondering if it was time to sell property in Cyprus.
British expats living in Cyprus have seen a fall in the Euro/Sterling exchange rate in the wake of the BREXIT referendum and are finding that their UK pensions are not stretching as far as they had planned.
In the aftermath of the referendum, the Sterling fell to a 31-year low. Things were pretty bad and there was seemingly no end to the fall. Exchange rates have fluctuated a lot since then, and the Sterling has recovered slightly from its lowest point. A pound is currently worth 1.15 Euro, at the time of this writing.
However, in the months ahead, we expect the uncertainty to continue as the British government goes ahead with the ratification of Article 50, which would begin the process of Britain’s formal exit from the European Union. This is a two year process and a lot of negotiations are being held behind the scenes between British officials and members of the European Union.
For British expats living in Cyprus, this has a direct impact on their life in the island nation, as they face an immediate reduction in their pension values. Also, they face the prospect of putting up their properties for sale in Cyprus, as many would like to get back to the UK rather than wait to see what the next few years would bring. Nobody likes to be in a situation where there’s just too much uncertainty.
So what does this mean for the overseas property market in Cyprus? Many Britons, who were looking to buy properties in Cyprus, have decided to postpone the decision following the fall in the pound’s value.
Any fall in the Pound’s value would have a direct impact on the buying power of British nationals looking to invest in overseas property in Europe and elsewhere in the world. So it would make sense for them to contact currency experts and lock down their capital at a rate that is advantageous to them, before venturing out into the overseas property market.
Although British expats have less cash to spend at the moment, it could just be a temporary situation. There’s no reason for the Sterling not to regain its old stature vis-a-vis the Euro.
Cyprus will continue to be an attractive destination for Britons looking for a perfect holiday home or retirement home. Idyllic natural surroundings, unspoiled beaches, modern amenities and friendly people – Cyprus has it all. The quality of life here is as good as it gets.
So there will always be a lot of demand for holiday homes in Cyprus, that’s not going away any time soon, Brexit or no Brexit.