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 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, ultra-low interest rates has boosted demand from local buyers.
Below is the annual change in Spanish property prices since the 2016 Brexit referendum.
As you can see above, there have been gains in prices in all years since Brexit, except 2020, where prices were flat.
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, 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 changed a few things.
For those who are already a legal resident of Spain, there is little to worry about.
Your current rights are protected by the Withdrawal Agreement.
For those looking to retire in Spain, there are still issues that need to be resolved, but there are solutions.
If you want to become a legal resident of Spain, going forward, you will 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.
While you might consider this step a pain, 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 the services of this company and found them to be trustworthy.
Healthcare is another concern for pensioners. That is something the UK government is still in negotiation about with countries in the EU.
Spain and France have already indicated they remain keen to attract British nationals to live in their country as long as those individuals are not a financial burden on the state (it's not exactly an unreasonable request).
As they say, where there's a will, there's a way.
In the interim, it is best to have private healthcare.
That will add another cost, but again you may again find it is not an obstacle to stop you fulfilling your life plans.
If you are looking to buy a holiday home in Spain, I can't really see how Brexit is an issue.
Post-Brexit, UK citizens have the same rights as citizens from other non-EU countries like the US, Canada, Australia and New Zealand.
It means you can visit Spain without the need for a visa but are restricted to a 90-day limit every 180 days.
So effectively you can stay in Spain for 6 months a year (half the time).
Do you know any second homeowners that use their Spanish property more than 6 months a year?
I doubt it.
In that case, Brexit doesn't impede holiday home owners in Spain.
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 32% above the previous peak reached in September 2007 (data from UK Land Registry).
Whereas in Spain, property prices are still around 33% below the previous peak in December 2007 (data from Tinsa).
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.
COVID has probably had a bigger effect on the Spanish property market than Brexit.
It's made it difficult for potential buyers to view properties.
Transaction volumes were down 17.7% in 2020.
Purchases made by foreign nationals were even harder hit, down 26.5%.
But it might surprise you to know that the Brits continue to buy more Spanish property than any other foreign nationals.
British buyers were 13% of the total in 2020 and bought 60% more Spanish properties than the French or Germans.
If you just read the mainstream press for news, you would think Brits had abandoned Spain altogether.
However, the data does not support the fear and hysteria that is often published.
- Spanish property prices have risen since the Brexit referendum in 2016.
- The market is underpinned by low interest rates 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.
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If you are looking to buy a property in Spain, we can help lower your cost.
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Even if you are just at the looking stage, it is worth getting in touch.
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This guide from MoneyTransfers to buying property in Spain.