Lower Euro makes Marbella property cheaper
The recent changes in the exchange rate between the Euro and the other main currencies has had its effect on property, most notably in popular second home markets such as Spain. Here in Marbella there has been a further rise in interest from an already growing demand base of buyers and investors in countries such as France, Belgium, Holland, the German-speaking countries and also Scandinavia, the UK, USA and the Middle East.
Where the Euro long hovered between 1.15 –1.25 to the British Pound, it began to slide at the turn of the year, now oscillating around the 1.40 mark. The drop in value against the Pound and other major currencies is largely the product of the latest round of quantitative easing, sluggish growth in the Eurozone countries and the boost that the latter should get from growing exports as European products and services become cheaper.
Non-Euro buyers get more for their money in Marbella
For homebuyers in the Eurozone, including Spain itself, the changes have no bearing, yet for prospective homebuyers and investors looking to acquire real estate and assets in Eurozone countries it means their buying power has suddenly grown by 12 per cent or more. In other words, you get a lot more house for your money, as a property priced at €1 million would have cost £800,000 a year ago and can now be bought for around £715,000 – a saving of £85,000.
It all means that for buyers from the UK, Scandinavia and also those in the US, Russia, Middle East and other parts of the world who use US Dollars for international transactions, property in places such as Spain has become even more attractive. Building on already strong demand for its properties and lifestyle, along with prices that are still highly attractive, Marbella and the Costa del Sol have received a further boost from the Euro exchange rate.
“We are seeing a surge of people from the countries in question that are keen to take advantage of the present opportunity to make the most of their strong currency and acquire Marbella homes at even more appealing prices,” says Fausto Martínez, CEO of the FM Consulting Group. “But foreign exchange is a changeable thing, so don’t wait too long if you have the intention to do the same.”