Surprisingly, Brexit has not caused the Spanish property market to fall; the Spanish property prices have risen since Brexit!
There has been a fall of the number of British buyers looking to buy coastal areas.
However, there has been a high demand from other nationalities such as, Scandinavian, Irish, German, Russian and Chinese buyers, these have been affected by Brexit.
Furthermore, low interest rates have accelerated the demand from the more local buyers.
Spanish property prices since the 2016 Brexit referendum: 2017 +4.5%, 2018 +6.5%, 2019 +1.2%, and 2020 +0.0%.
There have been gains in the previous years apart from 2020. This data is from TINSA which is the market leaders in Spanish property valuations.
Spanish property prices since 2015 have been slowly recovering and they returned to growth.
Although Brexit did not cause the Spanish property market to fall, it has changed many things; legal residents of Spain do not have much to worry about though as their current rights are protected by the withdrawal agreement.
There are some issues that need to be resolved for people looking to retire in Spain.
You will need to get a TIE residence card if you are looking to become a legal resident of Spain, assistance from a legal professional would be the best way to get one of these.
Money wise, you are looking at around €300 to get help from an expert; this may seem annoying however, it is a little price to pay to stay on the right side of the law.
Healthcare is still in negotiation between the UK government and countries in the EU. France and Spain have suggested that they are still keen to have British nationals living in their country if they do not have a negative financial effect on the country itself. Although, it can be costly, it is better to have private healthcare.
Brexit is not really an obstacle when looking to buy a holiday property in Spain.
UK citizens now have the same rights as citizens from countries that are not in the EU such as, Canada, the US, Australia and New Zealand; you can visit Spain without a visa however, this is a 90-day limit every 180 days.
Therefore, you could potentially stay in Spain for six months of the year with breaks in-between.
Prices have not come tumbling down since Brexit however, in comparison to the UK, Spanish property is cheap.
The average property price in the UK is now 32% above the last peak that was reached in 2007. In comparison to this, Spanish property prices are around 33% below the previous peak in 2007.
This means that you could potentially get a lot more for your money over in Spain!
When looking at the larger picture, COVID might have had a larger effect within the Spanish property market than Brexit has.
As COVID makes it extremely hard to be able to view properties and travel around to get to the properties. In 2020, the transaction volumes were down by 17.7% and purchases by foreign nationals were down by 26.5%.
Taking all of this into consideration, British nationals continue to purchase more Spanish property than any other foreign nationals.
British buyers bought 60% more Spanish properties than the Germans or the French and they were 13% of the total in 2020.
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Regency FX are a UK based independent currency broker, specialising in high volume transfers.
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The important thing is the comparison, online rates shown on Google and other search engines are not always accurate for the consumer.
They can often refer to the rates that banks exchange at rather than what is available to you, the customer.
Even if you are just looking for property at this stage it is worth getting in touch to discuss your options.
We can monitor the market on your behalf enabling you to budget more effectively.
As a first-class currency transfer service, here at Regency FX we endeavour to get the best available rate regardless of how much you are transacting.
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