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Property
make predictions they should be supported by some evidence; so here’s another quote for you “the proof is in the pudding”. Prices aren’t being made up; they are a reflection of a demand that is fuelled by new sources and an economy in continued growth.
I recently had a conversation with a young up and coming lawyer who was, in part, shocked at the levels prices had reached in Gibraltar and the recent success of high value off-plan sales in Midtown. His concern was centred on the alienation of local first time buyers unable to meet the pricing levels reached. To be fair he is right to take issue, an average first time buyer would need to seek lending almost 12 times their salary, in order to purchase within some of the mid-end/ high-end schemes.
Question: is Gibraltar moving into territory where applicants with limited means are not being catered for, or where the mid and high level markets are driving prices to the extent that even the lower sector is being adversely affected? I will answer with trepidation and at the risk of being ostracized from the community - No! Unlike most other high value jurisdictions, Gibraltar has
consistently catered for its own, we have done so for over twenty years in the form of affordable housing. This very model is why Gibraltar is successful and a great place for people from all walks of life to relocate to.
Whilst one continues to be mined numbingly annoying with outbursts of positivity and bullishness, I can’t but help to also consider the threats that our property sector and more specifically our economy may face. It would be fair to say that although our politics with Spain are not seeing the most fruitful moments, it is also true to say that regardless of our status quo, we have never really suffered, whatever their mood. A bigger concern might be the prospect of the UK wanting to leave the EU. I can just hear the palpitations of the financial services community, most of whom might be spending more time in the cloak room than ever before. From an objective point of view,
the chances of the UK leaving are low, the prospect of the Germans and the French actually allowing the Brits to actually go is akin to that famous John McEnroe quote “you cannot be serious.” Nevertheless, this is in my view the greatest concern and just the idea of it will hang a light cloud over heads for a while.
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