BREXIT impact on Marbella Real Estate
Foreign Home Buyers in Spain
The dream of UK nationals owning Spanish real estate may be challenged in the years following the BREXIT decision. Citizens from the United Kingdom represented more than a fifth of Spanish home purchases last year followed by: France, Germany, Belgium, Sweden, Italy and China. However, with potential currency devaluation and economic uncertainty following the BREXIT referendum, some analysts are speculating that those numbers could change as the cost of purchasing and maintaining a Spanish property will rise.
Spain brought in a huge quantity of British tourists from Europe, with 16 million arriving last year. During the five months through May, Brits spent almost €5 billion in Spain, which is a rise of 14% over the previous year. It's no surprise that UK Nationals accounted for about 20% of all spending by foreign tourists in Spain.
The impact on Marbella
remains to be seen but some are predicting that sales in some coastal areas of Spain could fall 20 percent in the next 18 months if a devaluing pound erodes the spending power of UK Nationals.
It's clear that everything could become more expensive for UK nationals if the pound falls, from mortgages to car hire and flights. Since the BREXIT decision, there has been a 9 percent decline in the value of the pound. Where it will go next is anyone's guess.
According to Spain's College of Property Registrations, U.K. citizens made up 21% of 46,090 acquisitions by overseas buyers last year. In total, foreign buyers made up 13% of all Spanish house purchases in 2015. In popular areas like Murcia and Andalusia, Britons made up a whopping 54% and 29% percent of transactions by foreigners respectively.
In Benahavis some are predicting that sales could drop by around 20% while prices decline by up to 9% in the next 18 months Britons sell or shy away from purchases.
Much will be decided upon where the pound goes next.
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