POSITIVES MOVES FOR GIBRALTAR PROPERTY MARKET

While some places are struggling during the drawn-our Brexit process, Gibraltar is prospering. Louis C. Montegriffo, Managing Director of BMI Group Gibraltar details the positive momentum of the peninsula’s property market. By Stephen Penn

The property market in Gibraltar is standing strong against Brexit concerns and economic uncertainty, with impressive rates of high value sales over the past 12 months.

Many could be forgiven for assuming the period between the invocation of Article 50 and the UK finally leaving the UK would mean significant instability in Britain’s Overseas Territory on Spain's south coast. But according to the latest data from BMI Group Gibraltar, the property market has remained strong, bullish and with a greater number of forecasted sales in terms of volume.

While many have their own assumptions as to why this is, Louis Montegriffo, Co-Founder of BMI Group has his own views. “There seems to be a driving force of interest and investment in Gibraltar, underpinned primarily by our Finance Centre, our strength in regulating our financial services and importantly, the fact that we speak English and are subject to British Law,” he explains.

The Property Outlook & Market Update Gibraltar 2017/2018 shows that the end of 2017 was hugely successful year across the board, with numerous high value sales and a consistent volume of mid-range sales which further underpinned the market in all four tiers. Data shows a clear growth in prices across the mid end region, principally the £300,000 to £700,000 price ranges which witnessed an increase in this sector of approx. 9% to an average of £510,000.

Top end sales have decreased slightly – in line with BMI predictions – but the team take the view that the upper 4th tier in the market has a great deal more to offer, but economic uncertainties are having a slightly impact on immediate growth and further increases at prices ranges above £1,750,000.

“We take the view that high value clients will no doubt keep a cautious eye on the upper end of the market before committing themselves to the £1.5m market,” Louis says.

The positive momentum of the property market is set to continue in the coming months, as BMI Group forecast an increase in stock levels, with the completion of various new developments coming to fruition and some with speculative stock still to be sold.

“We will also continue to see increased off-plan stock for re-sale driven by pending developments set to complete in 2019 / 2020,” explains Louis. “This will be primarily influenced by the volume of speculators wanting to flip their investment.”

As for off-plan sales, things are looking up as there are more than 500 units under construction over various developments. The first large scale scheme to be completed will be Midtown phase 1 which is scheduled for May 2018 followed by Ocean Spa during late 2018 and Quay 29 circa Feb 2019. Others will follow during 2019 / 20.

We will be of course be keeping a watchful eye in this sector, but so far we are very impressed with a number of the above developments which have witnessed increases on sales values – a strong indicator of a growing market.

To find out more about the property market in Gibraltar, visit www.bmigroup.gi