Page 16 - Layout 1

Property
Continued from p14
attracting high value profile clients, who value privacy and a safe place to reside in, “safe” in all respects, and the Rock continues to be a beacon in this regard.
Our views over the years maintain a trend: growth in owner occupier driven markets steered by a continuously growing gaming and finance centre, with stability and security adding further value.
Whereas we have been pleasantly surprised with the growth in a large part of the property sector, we also continue to remain cautious on the studio market sector given volumes under construction and imminent completions.
We took a view to stay out of this segment several years ago due to the high volume of proposed developments exclusively aimed at this product. We struggled with the prices being pitched and the marriage to an identifiable end user. It appears that to date it is the only sector that in general terms has
not enjoyed the growth in capital appreciation attained by much of the market.
To be clear, we are not suggesting that the average price in Gibraltar has reached close to £1,000,000, this figure has been reached because of some high value sales during this period, which are not representative of the market in general. The truer figure based on deleting these exceptionally high value properties is likely to be in the region of £780,000 which reflects an uplift of approx. 15-20% over the period.
Growing number of HNWI’s Outweighing all factors and reasons for the uplift is the very evident shortage of owner occupier, larger properties on the market and the demand that exists in this segment. We have been stating this for some time and advising our clients and applicants that it is this sector that remains the driving force and
has resulted in extraordinary capital appreciation. Gibraltar’s average top end rate per square metre has now reached approx. £6,600 from an average of £5,700 only a year ago. In some instances rates have reached up to £9,000/sqm.
The market has quite clearly pushed its boundaries once more, with average rates per sqm increased across all tiers, but in particular at the mid to high level tiers; we also believe that the fourth tier (upper high end) is firmly placed and here to stay, underpinned by a growing number of HNWI’s relocating and staying in Gibraltar – the jurisdiction is attracting real high value homeowners.
The cost of Covid
The economy remains difficult to forecast and our exposure to the cost of Covid should not be underestimated. However, unlike many other competitor jurisdictions we benefit from a multitude of sectors contributing to the economy, it’s not just financial services or e- gaming; Gibraltar enjoys a vibrant shipping sector, and we are at the forefront in the regulation of DLT / Crypto sectors which have added huge value to our suite of services – this is only set to grow further.
Tourism is also an important pillar of our economy, but it has to be said that there is a great deal more to be done; we have enormous potential, but we have always remained behind the curve in what is a sector that should be developed to its full and in keeping with the times.
If one considers the timeline since the Brexit referendum and all the uncertainties surrounding this and Covid, it has to be said that Gibraltar has done swimmingly well. The rest of 2021 brings its own challenges but with our ever growing economy and property sector things are looking bright.
www.bmigroup.gi
16
Gibraltar International
www.gibraltarinternational.com