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Property
Steady demand keeps Gibraltar property market buoyant after referendum result
Ultra-luxury at the Blue Water marina development
By Douglas Villalta, CEO, Century 21 & Co-Founder of Buena Vista Park Villas
It is obvious that the recent referendum result has created economic uncertainty for many and securing the best possible
investment will be their priority, with some opting to invest substantially in silver & gold, whilst others will try to benefit from the investment opportunities created from sharp sell offs in the stock market. Even though the Bank of England may be considering cutting interest rates within the coming months, the uncertainty about the UK's future will send international investors to look at other potential property markets and Gibraltar will be one of them.
The result could well be that, although many predicted a slowdown in Gibraltar property investments, global capital will continue to grow into the local real estate market during 2016 and beyond.
Although it is still early days after the UK Referendum results, there are still signs of relative resilience of prices in most of Gibraltar’s prime areas, with sales of properties in new off-plan developments and the resale market taking place after the UK’s unexpected ‘Leave’ result sprinkling some uncertainty over the local housing market.
Even though many may ask themselves
is buying a home a bad investment at this moment in time or alternatively, is renting a home a waste of money, the fact is that there has been significant number of rental enquiries since the day after the referendum took place, perhaps induced by the uncertainty of Spain applying additional pressure at the border, which in itself, is encouraging news for investor clients.
Whilst a number of European buyers may be tentatively dragging their feet into post EU property investment in London and other sterling driven territories, there is still a high number of potential investors from abroad who are looking to take advantage of the current indecision in various property markets, as a result of the weaker pound and Gibraltar is becoming an attractive proposition to many.
Property acquisitions in Gibraltar Even though there have been buyers who have decided not to proceed with their intended acquisitions after the UK
referendum, which in any event, was to be expected in certain cases, the general consensus amongst many in Gibraltar at this early stage, is that the local residential market will benefit as a result of the limited availability within open market developments, especially if we take into account the number of wealthy families and individuals who are still interested in property acquisitions in Gibraltar, thereby totally over riding the negative result of the recent referendum.
Even more encouraging is the number of ex-pats residing on the coast in nearby Spain, many of whom are already enquiring on the possibility of acquiring a property in Gibraltar, in view of Spain's threat to become more difficult at the border with Gibraltar, in the event of the UK triggering Article 50 and eventually leaving the EU.
This demand will surely give rise to a number of new residential projects coming to the open market, driven by the 'affordable housing' theme within the very foreseeable future, with attractive yields appealing to investors and especially to real estate
funds looking to diversify their real estate portfolio, whilst buyers benefit from attractive sales prices and affordable payment plans over the construction period.
Although some had predicted a slowdown in Gibraltar property investments, global capital will continue to grow into the local market during 2016, but it is inevitable that some lenders and investors may become more cautious. However, land shortage and continued demand, will continuously assist to strengthen the confidence factor in the local property market over the passage of time.
Furthermore, Gibraltar is still an attractive jurisdiction to many ultra high net worth individuals (UHNWIs) investors whose continued demand lies in other seg- ments of the market, many wanting to own ultra-prime residences in Gibraltar within premium locations and this is where projects like the new Blue Water luxury marina development, which will be situated on the east side of Gibraltar will gracefully step in.
Super Yacht Marina
Gibraltar as a whole will benefit greatly from the interest that this ultra-luxury Blue Water marina development will generate on an international level, in view that it will incorporate the most highly specialized Super Yacht Marina in Europe, alongside magnificent waterfront residences offering exceptional specifications and level of finish. Furthermore, Blue Water will attract status discerning individuals who invest in exceptional properties worldwide, in addition to wealthy super yacht owners who may decide to acquire a berth alongside an exceptional luxury residential property, giving rise to long-term investment propositions.
This exclusive landmark development which will also incorporate a five-star hotel and serviced apartments, is being carefully planned to create a new dimension to Gibraltar's residential market and will assist Gibraltar in becoming a leading destination, lifestyle hub and business center, together with entertainment facilities and onshore amenities, which will undoubtedly place the limelight on Gibraltar on a global level.
Whilst UK developers are reassessing
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