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Property
A robust and resilient property market!
By Douglas Villalta, CEO, Century21
While 2015 has been a very positive and nourishing year for the real estate market in Gibraltar, we expect 2016 to be even better, despite the cocktail of global uncertainty, with the main ingredients including China’s economic woes, predicted higher interest rates, historically low oil prices and Britain’s referendum on exiting the European Union and increasing tensions in the Middle East which predict a certain volatility likely to rip through financial markets in the first half of 2016.
Be that as it may, developers in Gibraltar wasted very little time switching their approach from sitting on the fence to embarking into new luxury residential developments which sold out within days of the official launch, as a result of the confidence factor and high demand in the local property market. This will bring new listings to market with the passage of time.
The median sales prices in Gibraltar are definitely on the upswing and we expect this to continue well into 2016 at a healthy pace.
Another important factor to take into consideration is that mortgages aren’t as difficult to obtain for most buyers and there- fore more homes are coming to market, as families are slowly but surely moving up the local property ladder, which is where interest rates step in.
Interest rates
All eyes are on the interest rates. They have been so low for so long that
just about everyone expects them to rise several times during 2016. We anticipate that any such increases will start off in small increments, so we will not experience a sudden impact on the housing market, but this possible increase could result in some buyers failing to qualify for a mortgage.
However, such is the resilience in the local property market and the constant demand for buying a home in Gibraltar, that the anticipated high number of buyers can offset the potential loss of those who won’t be able to qualify for a mortgage as interest rates increase.
Attractive interest rates in 2015 made buying a very attractive option over renting, and Gibraltar saw a healthy number of investor clients tapping in on the buy-to-let market. Gibraltar anticipates more of the same trends in 2016 without too much upheaval in any segment of the market.
There is also the line of thought that a
rise in interest rates may result in the selling season in 2016 kicking off at a much higher pace than predicted, in view that buyers will want to lock in as low an interest rate as possible.
New off-plan exclusive developments to watch out for in 2016 Blue Water is ideally positioned between Gibraltar's two most popular beaches on the east side and will undoubtedly be the development to invest in during 2016, as the end result will be an exclusive city within itself and adding a new and dynamic extension to the local property scene.
Boasting from the most unique and specialized super yacht marina in Europe directly on your door step which will accom-
modate super yachts in excess of 60 metres in length, Blue Water will also feature an exclusive 5 star hotel incorporating high end serviced apartments.
Furthermore, premium luxury build- ings situated right on the water's edge will offer spectacular marina apartments, complimented with high end retail and commercial units and hundreds of car parking spaces making Blue Water a very special and prestigious address in Gibraltar.
Buena Vista Park Villas - Phase III Buena Vista was developed for those discerning clients who wanted to acquire a bespoke detached home in Gibraltar, incorporating private gardens with swimming pools and unobstructed sea views.
Phase I sold out before completion and the impressive Stone Block in Phase II is already in advanced negotiations with an overseas investor client.
Phase III on the lower level, consists of very spacious bespoke detached and semi-detached villas and although a high number of properties have since been sold within this final phase, there is still the opportunity to acquire one of the remaining sea facing detached villas with private swimming pool or alternatively, one of the remaining semi-detached villas.
www.century21gibraltar.com
Buena Vista Park Villas
Blue Water is ideally positioned between ‘ Gibraltar's two most popular beaches on the east
side and will undoubtedly be the development to invest in during 2016
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Gibraltar International
www.gibraltarinternational.com
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