There is always a lag due to the time taken between purchasers signing a contract and going to the notary in order to complete ona purchase. In the case of resale properties this lag is normally about six weeks and in the case of off-plan new build property it’s typically 12 – 18 months.
One of the most obvious effects is the pound sterling currency devaluation. There is a strong correlation between the GBP – EUR rate and property purchases by British buyers. In May, the month prior to the referendum the rate was as at 1.42 Euros to 1 GBP, since the referendum it has dropped as low as 1.10.
Healthcare – EU Pensioners are entitled to free healthcare in Spain. Once the UK leaves the EU that will cease to be the case unless Spain and the UK can decide on a reciprocal arrangement. However, it is our opinion that it is highly likely that both nations will come to a reciprocal agreement, similar to what is already in place.
The month prior to the referendum
Some analysts are predicting further falls in the value of the pound when article 50 is triggered.
British vendors hoping to repatriate funds to the UK can afford to
The question marks over the what the outcome of Brexit will be mean that some buyers aspiring to own a property in Spain postpone the decision to purchase until the outcome becomes clear.
Where will be hardest hit ?
The Costa Blanca with more than 50% of properties sold last year to foreign buyers will be one of the hardest areas to be hit. The British represent the largest proportion of those foreign buyers, more than double the next largest foreign market.
Areas popular with British expats are therefore likely to be hardest hit.
The hardest of all will be the residential areas such as Playa Flamenca, Ciudad Quesada, Urb. La Marina.
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