Brexit impact nowhere near as bad as feared, say Spain’s property experts

The fears that Brexit would banish British demand for Spanish property have proven unfounded.

It is only natural to be cautious. With all of the uncertainty cast by the UK’s decision to leave the EU, there had been fears that a long-term slump in demand for Spanish property from British buyers would materialise…

But as it happens, demand has remained robust, with most of the contraction – if any – registered in the panicky run-up to Brexit, rather than since. And while a report by US news outlet the Wall Street Journal finds that demand from Brits for the higher end Spanish properties has indeed waned (largely because of sterling’s slump), the more traditional corners of the market are performing well.

According to MASA International UK head Simon Morris, sales figures since Brexit are not causing any undue worry for the firm, while Nick Wachter, who markets traditional Andalusian cave houses to British buyers says that the fears generated by Brexit have simply failed to materialise.

“We were prepared for the worst, but the worst hasn’t happened,” Wachter told the Wall Street Journal.

Indeed, one upside that Brexit has brought is the drop in the value of sterling against the euro, which has compelled some British vendors to sell their Spanish homes at a lower price in euros, while still earning the same in sterling. This is helping to bring further energy to the market, the report said.

The uncertainty currently engulfing much of European politics – Spain entering its ninth month without a government, the UK thrashing out the terms of its exit of the EU, the ongoing migrant crisis – would, on paper, send shivers down the spines of most real estate operators in Spain.

But in fact, instead of nurturing uncertainty and slow sales, the Spanish property market looks in rude health – which is a testament to sensible pricing, good quality and Spain’s enduring appeal to Brits seeking that sunny bolthole.