A UK overseas territory attracting over seven million visitors each year, Gibraltar’s economic success has made it one of the wealthiest countries in Europe.
lthough Gibraltar was a military base for over 300 years, little military presence remains today. The old town is now focused on regeneration which means buyers are able to purchase high-end, contemporary properties as well as those with character and original features.
Carrie Jackson, sales negotiator of Mulberry Real Estate, says “In recent years, the popularity of marina areas has been foremost in property sales. With the rise of Ocean Village marina complex and the area around the Queensway Quay, marina properties have been driving property prices. With these areas now fully built, focus is moving to the family orientated south district. Presently there is still major construction and development underway with the delivery of a number of new residential and commercial property projects over the coming 24 months.”
The type of purchaser in Gibraltar is diversified. “With a proven track record, it has in recent years become a favourite with the investor,” explains Ms Jackson. “There is continued need for skilled workers and high value employees seek to purchase their own apartments. Gibraltar is also experiencing a large number of purchasers from the UK looking for a change in lifestyle. There are attractive tax schemes for wealthy clients and the tax benefits Gibraltar can bring such as no capital gains on purchases or inheritance tax are also a draw to the financially astute.”
Average house prices have risen from just over £100,000 in 2000 to around £450,000 with individual villas selling for up to £10 million. Mulberry Real Estate has also seen 20% year on year growth in the industry over the past three years.
Mike Nicholls of Chestertons International in Gibraltar reports that 46% of the Gibraltar workforce (13,000 out of 28,000) live in Spain and cross the border between Spain and Gibraltar daily. “Hence the Brexit outcome, especially in respect of movement of people, is of huge importance to the Gibraltar economy, the local Spanish economy, and 13,000 individuals and their families,” he says. “Crossing the border daily will not get any easier and could become more troublesome. As a result, Brexit has increased the demand for property in Gibraltar as predominantly ex-pat British employees living in Spain and working in Gibraltar seek to leave Spain and move into Gibraltar. The problem is that Gibraltar property is significantly more expensive than Spanish property.”
Developers responded to this supply shortfall some time ago and approximately 2,000 new units across 11 different developments should be completed between 2019 and 2021. “In the short term, since the referendum, prices have hardened considerably,” says Mr Nicholls. “Over the next two years, the 10% increase in property supply should alleviate much of this pent-up demand.”
