How should you play the property market in Costa del Sol now, given that it’s only a matter of time before the UK triggers Article 50, which would finally put Brexit into motion? Should you sell your property in Costa del Sol, Spain fast in 2017? Or should you take a contrarian approach, and buy property in Costa del Sol, Spain online this year?
It’s not an easy decision to make, but let’s look at the facts. The fact is while the demand for holiday homes in Spain remains very strong, not too many Britons are buying them. The strong pound led to Britons buying over 10,000 properties in the region in 2014. But the last 8 months have seen a 16% drop in sales.
Even so, Britons continue to be the dominant buyers of properties for sale in Costa del Sol, Spain. 28 percent of the holiday homes sold in this region were bought by Britons. Even in the neighbouring Costa Blanca, British involvement remains high, with Brits responsible for 26% of the property purchases.
But there is no question that the sales are not as high as before, says Mark Stucklin, a top real estate developer, in an interview with the Guardian: “We have carried out a survey of the sector and it appears that house purchases by Brits on the Costa del Sol and the Costa Blanca have fallen by around 50% since the referendum.”
Stucklin adds, “When the pound fell below €1.20, from 2009-13, Britons bought fewer than 5,000 homes a year compared [with] nearly 10,000 in 2015. If the trend continues it will have a significant impact on the Costa Brava and Costa Blanca markets, among others.”
“While demand from other countries such as Germany, Belgium, Sweden and France is growing, in the short term, it’s not enough to make up for the lost British buyers,” he concludes.
Catriona Hogan, an estate agent based in Spain agrees, “At first it was the uncertainty after the Brexit vote, and then the fall in the pound. About 40% of our clients are British and we’ve seen that drop to around 30%. There’s still a lot of interest, but there’s a wait-and-see attitude as people are watching to see what happens with the pound. Things are picking up a little now.”
At the time of this writing a pound is worth 1.19 euros. So if you already have a home in Spain, you can take advantage of the recent upwards momentum in the Spanish property market and sell your property for a nice profit.
You would get a great deal converting the euros got from the sale into sterling later, when you repatriate the proceeds back to the UK. This would leave you flush with cash.
You could then wait for the pound to pick up in value. The British economy has held up quite well since Brexit, and we expect the pound to regain much of the lost ground in the near-time future.
Once it does, you will have a much higher buying power, which means there will be a plenty of opportunities for you to buy a new holiday home in Costa del Sol. Brexit should be seen as an opportunity that you can take advantage of, and this is just a suggestion on how you could do that.