Hornets_Nest

Early days I know but the EU referendum has already impacted on the strength of the pound and it has now hit a 31 year low against the dollar having lost 14% of it's value since the ballot.

Add to this general nervousness around the UK property market (residential and commercial) + possible changes in interest rates and the the prospect of a recession and this will affect UK buyers at least in the short-term.

The Spanish property market relies heavily on Brits who buy one fifth of those sold to foreign nationals and so this must have an impact in Spain IMO.

cricketman

One fifth of those sold to foreign nationals really isnt a lot

I think the impact of the overall housing market in Spain will be minimal. The average property sold in Spain is a 70 square meter 2 bed flat in and around the cities, the very opposite of what a British person would buy

However, yes the property market in the Costas could be affected, particularly in those neighbourhoods that are full of British people. Here properties could completely crash, but of course, they have already crashed. What was virtually unsellable could become impossible to sell. And you might see properties becoming abandoned.

Moses2013

It's hard to say, but I wouldn't say the property market relies on Brits.
Unless it's a typical British area, people across the globe are still buying properties. I'm sure some locals who want to buy property in certain areas will be delighted that they no longer have to compete with so many British buyers. The properties that are just aimed at British buyers will obviously be very hard to sell.

missile

I would be more concerned about the impact on the UK property market.

bob_bob

20% is a lot... more tosh from CM

amideislas

It's hard to say. As interest rates stay low, and the Euro declines in value, one would expect property prices to rise, but if household income also declines, then it will be more difficult to sell at any price.

Here, the *listed* values have been rising steadily, but precious few are selling. Precious few. Except for the few mega bargains from desperate sellers.

I don't know. These are indeed interesting times.

cricketman

20% of sales would be a lot

But British people only make up 20% of sales to foreign nationals. So in total maybe 1 or 2% of all sales in Spain

Trance4mer

3% according to this article:

Los extranjeros compran más casas en España que nunca | Economía | EL MUNDO

cricketman

2.6% so not too far away from my estimate

JuliaStein

I believe in the slight fall of prices in England and Spain. Spain will suffer a wane of demand for real estate from British buyers who were extremely active in this market. And in London the weak pound will play its part to attract new foreign investors. A sad thing that common people will suffer at the end.
A good piece on the topic https://tranio.com/united-kingdom/ne...e-the-eu_5152/
Pay attention to the part "the real estate market in Britain may benefit from heightened foreign interest"

amideislas

That may be true elsewhere, I don't know. But British buyers here account for a mere fraction of "foreigners" buying property. It's predominently Germans and Scandinavians who buy here. They've traditionally been the ones with resources enabling them to buy 2nd homes.

Yet little is selling right now anyway. So it's probably a moot point.

Personally I think properties are currently listed much too far above market value in hopes of encouraging higher offers, but that turns away many buyers, especially Germans, because "negotiating" isn't a typical German expectation, particularly when buying property. So they see the price and just walk away, without even considering that the seller will most certainly accept less. In many cases, much, much less.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

scot47

"Do you know how much my house is worth ?" A truly Anglo obsession !

johnnyone

Not so much an obsession, more of a problem in London. Property prices are ridiculously high forcing people further and further away. I can see little benefit in skyhigh prices.
eg:
3 bedroom semi-detached house for sale in West Avenue Road, London, E17, E17

Bonkers!

I do not see Spanish prices going anywhere in the short term.

bob_bob

It is an obsession but in reality your home has no value...unless you sell it and have the cash to play with.