The Spanish property market after Brexit
Has Brexit led to a fall in Spanish property prices?
The simple answer is no.
Overall, Spanish property prices have risen every year since Brexit.
Some coastal areas have seen a decline in demand from British buyers.
But the Spanish property market has held up because demand has been strong from other nationalities, such as German, Scandinavian, Irish, Russian and Chinese buyers - who have not been affected by Brexit.
In addition, the Spanish economy is performing quite well (growth of 1.98% for 2019), which has boosted demand from local buyers.
Below is the annual change in Spanish property prices since the 2016 Brexit referendum.
2020: +1.1% (6 months to 30 June)
As you can see above, there have been gains in prices every year since Brexit.
The data above is from TINSA - the market leaders in Spanish property valuations.
Even at a regional level (the Costas and Balearics), there has been a steady increase in prices.
In broader terms, you can see from the chart below that Spanish property prices returned to positive growth (above zero) in 2015 and have been gradually recovering since.
Buying a property in Spain after Brexit
No doubt, Brexit has created uncertainty about the future rights of Brits living in Spain.
People are naturally concerned about whether they will be able to freely access their Spanish property whenever they like following Brexit.
But if you are already a legal resident of Spain, you have little to worry about.
Your current rights are protected by the Withdrawal Agreement.
For those looking to retire in Spain, there is still an opportunity to make your move during the transitional period (which ends on 31 December 2020).
If you become a legal resident of Spain before the end of the transitional period, you will be granted the same rights to stay as those already living in Spain prior to Brexit.
THIS IS IMPORTANT:
The number one priority for Brits buying a property in Spain is to be officially registered before the end of December 2020.
You basically need to get something called a TIE residence card.
It's possible to do it yourself.
But my advice would be to get assistance from a legal professional in Spain.
Here is an affordable and competent Spanish law practice I am happy to recommend and know will do a good job.
It won't cost much - around €300 - to get their expert help.
Let's face it - if you want to live or buy a property in Spain, spending a few hundred Euros is nothing to make sure you are on the right side of the law.
And in case you're wondering - we're not getting a kickback. We've used their services and found them to be trustworthy.
If you are looking to buy a holiday home in Spain, I can't really see how Brexit will be an issue.
Say UK citizens end up with the same rights as citizens from other non-EU countries like the US, Canada, Australia and New Zealand (I think that's the worst case scenario).
That means you could visit Spain without the need for a visa, but would be restricted to a 90-day limit every 180 days.
So over the course of a full year, you could use your Spanish property for 180 days (half the year).
Are there many second home owners that really use their Spanish property more than 6 months a year? I doubt it.
In that case, Brexit won't impede the use of your Spanish property.
Spanish property remains relatively cheap
If you were hoping that prices had crashed since Brexit, I wouldn’t be too disappointed.
Compared to the UK, property in Spain is very affordable.
In the UK, the average property price is now 22% above the previous peak reached in 2007 (data from UK Land Registry).
However, Spanish property prices are still around 35% below their peak.
From the perspective of British buyers, it means you can get a lot more property for your money in Spain than the UK.
We work with hundreds of Spanish estate agents and property lawyers, so we have a good grasp of what is happening on the ground in Spain.
Despite the doom and gloom in the press, Spain's attractions remain the same: climate, lifestyle and value for money.
And regardless of Brexit, the British still buy more Spanish property than any other foreign nationality.
That hasn't changed either.
- Spanish property prices have risen since the Brexit referendum in 2016.
- The market is underpinned by a healthy economy and foreign demand.
- Spanish property remains cheap relative to the UK.
- The British are still the largest group of foreign buyers.
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Key Currency is a leading currency specialist.
With offices in both Spain and the UK, we are experts at helping British buyers with Spanish property transactions.
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If you are looking to buy a property in Spain, we can help lower your cost.
With great exchange rates and no fees, you could achieve signficant savings when it comes to paying for your property in Euros.
Even if you are just at the looking stage, it is worth getting in touch.
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