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Property
Property outlook 2021
By Louis C. Montegriffo, Managing Director, BMI Group Ltd
This year began with further lockdowns but we hoped and expected that this was the last curve on this winding road, for Gibraltar at least. What was certainly not expected was the buoyant mayhem that unfolded during the course of the first half of 2021.
The end of 2020 did bring with it some good news in the shape of the “New Year’s Agreement” with Spain and the UK, delivering a degree of certainty for Gibraltar’s political and economic status, something which, since 2016 Gibraltar has lacked. This really was a gigantic catalyst to the events in the property market over recent months and which has seen an uplift in property prices averaging (in general terms) to approx. 7%, but up to 15%+ in some circumstances.
Over the past decade we have regularly provided appraisals on our thoughts and forecasts on the property market. Since 2017 we have highlighted our concerns with the
high volume of speculative developments steered by a “studio” segment delivering hundreds of these units to the market. We have also expressed our bullishness in the market on “owner occupier” properties within the mid to high end tiers of the market and the demand for these properties. This demand has in part, been steered by an expectation of a positive outcome with regard to Brexit, as well as real growth in the market driven by applicants seeking larger homes, in their quest to base themselves in a safe, English speaking, regulated, low tax environment. We seem to be cementing this attractive proposition toward the “ultimate residency” further.
Free movement with Spain As to the impact of forming part of the Schengen group may have on the property sector in Gibraltar, clearly the prospect of free movement with Spain under a safe political arena not seen in over three hundred years is an attractive and positive proposition, not least with a continued and underpinned financial services relationship with the UK; the future seems bright, and we welcome the
agreement. There is little one can say to try and sum
up the happenings of the past year, let alone that of the past 4 years. Just when we thought that there could be nothing worse than the antics of Brexit, we are given the joys of Covid-19.
Thankfully in Gibraltar we can rest slightly easier than most due to our successful vaccination programme.
Owner occupier markets
Against all the odds, we saw price increases and sales volumes take a sharp rise throughout 2020 and an even sharper rise throughout the first half of 2021. It has been the owner occupier markets, largely two, three, and four bedroom properties in mid to high end developments showing some truly spectacular gains with some increases in excess of 15%. The higher end and fourth tier in the market generally with price ranges upwards of £1,500,000 has also re-emerged with strong activity in this sector and sales in areas such as The Sanctuary (circa £6m and offers now reaching upwards of £7m), Buena Vista Park (average of £3.5m), Admirals Place and others. Interestingly Gibraltar seems to be
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14 Gibraltar International
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