Property Values

Curious American here who just purchased property in one of the "pueblos blancos."

Questions: What effect, if any, do you think the Brexit will have on property values in Spain? Do you think people in the UK are more likely now to be hesitant -- and wait a while -- to buy holiday homes or vacation bolts ... especially in Spain?

I think too much emphasis is put on the Brit buyer, they make up around 20% of all foreign purchasers. Although significante foriegn purchasers only account for 12.5% of property sold in Spain

It won't make any difference to property values the supply and demand will sort that  out,l had a place in Turkey for 9 years which is not in the EU membership state ,the only difference you mite see will be the introduction of a Visa system and car ownership for instance someone like myself that owns property in Spain will not be permitted to own a Spanish regesterd car  on a visitors Visa these normally last 90 days ,to own a vehicle you will need to have residents state's (IE ) apply to the Spanish government to be a permanent resident,  that's the way it works in every other part of the world so l would expect this to happed over the next 2 years if you read Article 50 for EU membership ship it's all self explanatory.

There is no doubt that a low £/€ exchange rate will deter UK buyers and also the uncertainty at home regarding the economy and the state of play in Spain relating to the British becoming resident in Spain. One can only assume that the current rules applying to non EU people will be a starting point. whether or not Spain will make special rules for us will depend perhaps upon Gibralter and any deal the UK government may do. But that is down the line as it is hardly a priority

Existing owners are unlikely to be affected except in relation to taxation as we will be treated as Non EU citizens!

So taking UK buyers out of the market will reduce the possible increase in values which was starting to happen but other demand from Northern Europeans which has from all reports been strong recently, will be unaffected

So Brexit must be negative for property values on the Costas but a lot depends upon the Spanish economy which is showing signs of growth and this may stimulate local demand which counter balances the Brit situation

Any one selling may benefit from the low exchange rate- many bought at 1.50+ and taking it back at 1.23 or below is a bit of a buffer in £ terms and enables Brits in Spain being able to accept a lower € price

With all these issues it will be interesting to see what happens! But the continuing increase in values in Brit locations which was starting will I suspect now go back to previous levels