Strong pound, weak euro: the perfect storm for a holiday, and home, in Spain

Take note: the strong pound makes Spanish property quite affordable for Brits

It has been nearly ten years since the pound sterling was as strong against the euro as it is currently, and with £1 buying you €1.34 at today’s rate, perhaps now is the time to finally buy that property in Spain…

If that is what you were already thinking, you are not alone. Leading UK property portal Rightmove has reported that the number of Brits looking to purchase property in Spain has increased by 48 per cent in the space of a year.

And according to foreign exchange specialists HIFX, the number of Brits interested in investing in property in the Eurozone as a whole has increased by 28 per cent over the past 12 months.

But as the UK general election draws closer, the pound could well weaken as markets react to the uncertainty caused by choosing – and installing – a new government. Hence, now might be the best time to act if you wish to make the most of the excellent exchange rates.

“A hung parliament (which is looking like a distinct possibility) will inevitably leave markets uncertain as to which political party will govern the country, and the pound is likely to weaken,” said HIFX’s Andy Scott.

So the time might well be perfect to snap up that Spanish property, particularly as data from the OECD suggests that Spanish property is currently valued ‘About Right’, according to latest analysis. But prices are expected to begin climbing steadily over the course of 2015, experts agree.

Data from Eurostat shows that average property values in Spain have climbed every quarter since the midway point of 2012 but, as a recent report revealed, Spain’s property market is very localised, meaning some regions are still seeing prices fall while others – like the Costa del Sol – have enjoyed a stable recovery in their property prices.

But if you still do not feel ready to purchase a property in Spain just yet, there is no harm in looking, right? The strong pound makes taking a holiday in Spain extremely affordable right now, and so it is expected that 2015 could be a bumper year for Spain’s tourism industry.

The European Tourism Association has suggested that holidays to Spain are around 15 per cent cheaper today than they would have been two years ago. Spain attracted more than 65 million foreign investors in 2014, but already leading travel agents are reporting higher demand for holidays in Spain so far in 2015 than they did last year.

Brits are Spain’s biggest fans. Last year British tourists spent €12 billion in Spain, helping the country’s tourism sector to drive 11 per cent of Spain’s GDP.