Pre and post Brexit many British citizens dream of making the move to Spain to enjoy its great climate, lifestyle and cheap cost of living. But with the surprise Brexit leave decision, and the following dramatic drop in the value of the UK Pound this dream may look ever more distant. But it need not be that way – chase your dreams! Read here how to buy Spanish property at pre Brexit exchange rates. This article is also applicable to other currencies which have suffered against the Euro post Brexit such at the Swedish Krona.
There is a constant flow of British expats moving to Spain and back to the UK for a variety of reasons, including work, new relationships, family and health issues.
First the bad new for buyers and good news for vendors. In the past 12 months the pound euro exchange rate peaked at €1.4297 Euros to the Pound. This was back in November 2015. Following the Brexit leave vote it is currently (mid October 2016) sitting at around the €1.10 to the pound mark, representing almost a 25% drop in the value of the pound to the euro.
So in theory there is currently the opportunity for British owners here in Spain to make a great 25% windfall on the sale of their Marbella property before returning to the UK.
Now the good news for buyers, most vendors have their expectation levels set, in the currency where they plan to send the proceeds, at the time they put their property on the market, which could be anything up to several years ago.
So for example a British vendor, planning to move back to the UK, putting his €1,000,000 Marbella villa on the market in November 2015 would have his expectations set to raise £750,000 UK from the sale of his property. This is some 25% below the current asking price in Euros for his property.
So in theory British vendors could get very excited and think they have the opportunity to make a 25% windfall. In reality many British owners who have had their property on the market for a while and are needing to get back to the UK quickly (trust us – when you live here you will realise making the move back from Marbella to the UK is usually a forced decision!), are very happy to achieve the sterling figure they had in their mind when they first put their property on the market.
Will there be a Spanish property price crash after Brexit?
Whilst there is no doubt the British are important and valued customers to the Spanish property market, and they will be looked after well in future negotiations for treatment after Brexit, the statistics show they make up just 4% of the market. Marbella has not changed, it still offers the same superb year round climate, excellent quality of life, fine dining and lively nightlife. Hence its appeal to buyers from all around the world, especially those from Scandinavia, Russia and the rest of Europe. So although there may be a short term dip in interest from UK buyers it is very unlikely to cause a price crash.
Is it still a good time to buy a property in Spain?
Yes, while the Marbella property market has showed very significant recovery since the start of the crisis in 2007, especially in the past 18 months, there are still some great bargains to be had. Even taking into account the recent drop in the value of the pound you are still able to buy certain properties here significantly below the prices they were commanding in 2006.
How can you buy a Spanish property at pre Brexit exchange rates?
So in answer to our headline question get in touch with a reputable agent like Luxury Villa Sales, who know their properties and their clients well, and can help put you in touch with a motivated British property vendor moving back to the UK, who will be happy to take an offer which gives them their initial expected return in UK pounds. In some cases you will be able to achieve a purchase at a price equivalent to the old pre Brexit exchange rates. Get in touch with us today (+34 952 77 44 33) to see the best deals we can offer you or contact Luxury Villa Sales here.