Brexit worries and the falling pound are causing more and more British expats to sell their Spanish property. Since the referendum in June last year home sales in Malaga province, for example, jumped up16.5% according to Spain’s expat paper the Olive Press. The “best-selling” region is the Brits’ beloved Costa del Sol, where the sales hit the record numbers at the end of 2016.
The property experts say that fears over a low pound and consequences of Brexit caused high numbers of expats to put their Spanish homes on the market.
“The uncertainty of the UK’s economic future is pushing many Britons to pose a situation unthinkable until months ago: selling their home in Malaga. We have found that both UK citizens who live here and those who have their second home in our province have changed their perception of real estate investment and prefer to sell property now before the economic context changes further.”
Fernando Pastor, President of the Colegio de Administradores de Fincas de Malaga y Melilla
So is the Spanish property market going down?
Not at all. On the contrary, the government’s central statistics unit published last week the end-of-year data showing that the property market in the country grew an impressive 13.6% in 2016 according to Costa del Sol property blog VIVA.
Moreover, every one of Spain’s 17 regions recorded a sales increase with the majority of the homes being resale properties.
While Britons are selling, non-EU expats are buying
The high turn-over in the property market is a result of an increasing interest of non-EU expats in Spanish homes.
The Spanish government offers Golden Visa to those looking to invest in excess of €500,000 into Spanish property. The visa gives the opportunity for visa-free travel within Europe which appeals a lot to moneyed foreign buyers. According to Property Forum there has been a 2500% increase in the number of buyers from the Middle East. Also, buyers from Russia and Lithuania are up nearly 200% compared to 2012.
So despite Brexit fears and British expats selling their homes in high numbers, property experts hope that the positive trend will keep on through 2017 and onwards.