A ROCK SOLID ECONOMIC OUTLOOK  

Earlier this year, Gibraltar’s Financial Services Commission (GFSC) made an innovative power play by opening the doors to cryptocurrencies. The message? The Rock is open for business.

 Home to a thriving local economy that is driven by financial services, gaming and insurance, Gibraltar has outperformed many neighbouring countries, with its GDP rising from £507m in 2002 to a staggering £1.8 billion.

In January, the GFSC made history when it announced that it was introducing a regulatory framework for companies involved with DLT (Distributed Ledger Technology, commonly known as blockchain) which is the backbone of cryptocurrencies including BitCoin and Ethereum.

This proactive and innovative approach is expected to attract new investors and businesses, particularly fintech companies, who understand the appeal of a decentralised - yet regulated - alternative currency. This is further bolstered through the emerging Gibraltar Blockchain Exchange (GBX), which aims to be a world-leading institutional-grade token sale platform and cryptocurrency exchange, supported by its Government.

As a result of these enhancements, appetite for property is likely to rise as this new workforce comes to fruition, during a time when demand already outpaces supply. At present, there are around 13,000 Gibraltar employees living in neighbouring Spain, many of which would choose to live in Gibraltar if suitable properties were available.

Currently there are around only 250 homes available on the open market for purchase and about one tenth of that available to rent, with investors enjoying yields of between 5.5-8% and capital growth of between 2-5% per annum for the past ten years.  While it’s possible to find higher figures elsewhere, it’s almost impossible to find that level of stability.

The growth in demand for property, year on year in the last decade, is a direct result of Gibraltar’s successful economy which has grown every year since the turn of the century – and experts predict that there is little sign of it slowing down.