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There is, admittedly, a lot of uncertainty in Europe as the Article 50 has been triggered by Prime Minister Theresa May. This does have ramifications far beyond the UK. Britons are the biggest buyers of property in Spain, so as you might expect there are serious concerns in Spain over Brexit.
So, if you’re going to be selling overseas property in Spain fast in 2017, should worry about Brexit? Would that really affect buyer sentiment in Spain? Let’s investigate.
So far, there haven’t really been any major repercussions on the Spanish property market despite Brexit. While it is true that there has been a decline in the number of British buyers of overseas properties in Spain over the last 9 months or so, the drop was not as drastic as feared.
The fall in the pound’s value was dramatic in the immediate aftermath of Brexit. The Sterling dropped to as low as 1.09 EUR in November, 2016, from a high of 1.55 EUR only in 2015.
Since then, there has been a major recovery. The Sterling is now worth 1.17 EUR, even as Article 50 has been invoked, which sets Brexit in motion.
This means the buying power of British expats who are interested in investing in Spanish property hasn’t really suffered too much. Brits are still in the game, both as buyers and sellers in the Spanish property market.
What has also happened is that there has been an increase in the interest shown in Spanish property from Germans and Scandinavians. The German interest, in particular, has risen by 25 percent over the last 9 months, according to real estate agents in Spain. The demand from Swedish and Norwegian buyers remains as strong as ever, as does the interest from Swiss investors.
There has been a substantial increase in demand for Spanish property from wealthy Chinese investors, who are drawn in by Spain’s Golden Visa program, which promises residency permits to all non-EU investors who buy properties worth 500,000 EUR or more in Spain. A number of high net worth business executives from the Chinese mainland and Hong Kong have taken up the enticing offer.
The demand from Russian investors remains strong, despite the economic problems in Russia. The rouble has dropped in value in recent times because of the fall in oil prices and the sanctions imposed against Russia by the United States and its allies.
That the Spanish housing market is in rude health is indicated by the fact that property prices in popular tourist destinations such as Málaga and Alicante are now back to the level last seen in 2007. Other regions such as Costa Brava, Valencia, Costa del Sol and the Canary Islands are doing spectacularly well as well.
There is in fact an extraordinary demand for apartments in Madrid and Barcelona. Madrid and Barcelona are considered by many to be the most liveable cities in the world, in the same league as London, Paris and New York. So things look good here and those looking to sell overseas property in Spain quickly in 2017 have no reason to worry whatsoever.