Much has been said in the last weeks of the consequences of Brexit for the property market in Mallorca and Spain. Since the referendum held last June, the pound has dropped more than 10% in value. Because of this, several investment funds in the Balearic property sector suspended trading before the rain redemption orders.
So, the situation doesn’t seem beneficial for the real estate sector in England, however, this situation has a positive impact in the short to medium term real estate in Spain.
The impact of Brexit has meant the loss of value of sterling by about 10% against the euro. This implies a loss of purchasing power for buyers; despite this, the Balearic Islands are one of the main destinations for British investment. The current situation is beneficial for them and are interested in investing for reasons of proximity, connections, climate and quality of life.
Real estate sales have increased by 79% in the first half of the year. The price has increased in some cases up to 59% and in some areas of the island is taking the case that the supply is unable to meet demand. The real estate market has emerged mainly in the investment side and in relation to British investors are expected to increase their investments in our country, as high interest remains in the residential. The Spanish property market offers great opportunities and high returns for the British and the Balearic Islands are presented as an attractive investment in the medium and long term.
After all the foregoing arises a positive impact of the Brexit on the Spanish real estate market, in fact many non-EU buyers have already begun to look for alternative places to London that offer good investment potential. The number of British citizens seeking to move abroad has increased by 30% and Mallorca is at the top of their searches.
Buying a property in a foreign country can be a complicated affair and fraught with formalities and obligations that the purchaser might be completely unaware of until it is possibly too late. Ripoll Mateu Solicitors Mallorca understand that the process of buying a property in Spain differs from that in the UK. We can advise you on all matters relating to the purchase of your property, for foreign investment, we offer legal assistance regarding funds from other countries for investment in real estate and business.
We specialise in Real Estate Law and legal and tax advice in the process of buying and selling a property in Mallorca, contact us for your request.