Are you looking to sell your real estate in Spain quick? You are probably worried by the fact that there hasn’t been a government in Spain for the last 9 months. Yes, you would be worried about the impact of Brexit on the Spanish housing market as well.
Let’s discuss both issues here. First, it’s okay to be cautious when it comes to buying or selling a home. There’s no question that the decision to either sell or buy real estate in Spain quick is one of the biggest decisions you will make. So it’s important to make the decision at the appropriate time, when you’re truly ready for it.
The impact of Brexit is still being discussed in the UK, and it’s being talked about in Spain as well. There is certainly a lot of uncertainty over Britain’s decision to leave the European Union. But the fear of Brexit causing a long term slump in Spanish property has not really materialised as British buyers are still among the biggest investors in Spain.
As a matter of fact, the demand for holiday homes in Spain has been pretty robust. Now, there was some contraction in the housing market immediately following Brexit, but that has by now dissipated. There’s no panic in Spain, despite Brexit.
The Wall Street Journal claims that the demand from Brits for high end Spanish properties is lower than it was in the pre-Brexit days, but in the lower to mid-priced segment, the demand is as strong as ever.
One can understand why the demand for luxury villas in Spain have dropped off – the sterling has performed very poorly in the aftermath of Brexit and is currently priced at 1.11 Euro, which is very low, considering the sterling was worth 1.51 Euro just 12 months back.
This means buying properties in Spain has gotten more expensive for British buyers. But this has only affected the luxury end of the real estate segment, and not the lower-end or mid-priced property segment. This is good news for sure.
As one real estate analyst based in Spain, Nick Wachter tells the Wall Street Journal, “We were prepared for the worst, but the worst hasn’t happened.” That’s the sentiment most people involved in the overseas property market tend to agree with.
Brexit has actually benefited Brits who have real estate for sale in Spain. It has helped them get more out of the sale because of the strength of the Euro compared to the Pound. So it’s not all bad news.
Now, regarding the political situation in Spain, it’s very likely that we are going to have a government in Spain over the next few weeks. The forced resignation of the PSOE leader Pedro Sánchez, who was refusing to allow acting Prime Minister Mariano Rajoy of the rival People’s Party to form a government means the coast is clear for the formation of a new government.
We expect a new government to be in place in Spain under the leadership of Mariano Rajoy before the end of October. If not, well, there will be another election in December 2016!