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The Euro is feeling a pinch…by the Pound!
In this week’s news, the weakened Euro is providing a great incentive to foreign property buyers, especially the British. Why?
Over the last year, the British pound has increased in value by over 10% but in recent weeks, the currency has been at it’s highest exchange rate level against the Euro since 2008. It has been generally felt that shrewd British buyers, although very interested in buying a Balearic property, have exercised a degree of caution and patience. It looks very much like these qualities have paid off as British buyers now have the opportunity to enter into the Balearic market with their currency at it’s strongest for nearly 7 years and the market prices at their lowest or most competitive in quite a long time, maybe more than 10 years.
Timing could be crucial as this strength of British pound comes at a time when the overall feeling about the economy in Spain is one of growing confidence. This has led to an increase in the amount of mortgage applications and approvals.
Another positive factor of these currency swings will be the effect on holidaymaker tourism to Ibiza, the Balearics and of course Spain. The tourism market in Spain last year was it’s strongest for many a year with Ibiza having record breaking arrivals through the airports & ports. This type of strong tourism historically and statistically leads to an increase in property buyer activity.
Since late 2014 and into 2015, we at everything ibiza have noticed the increase in property enquiries quite dramatically with this particular trend not showing signs of slowing down.