Brits looking to purchase a home in the warmth of Spain are making the most of a number of favourable conditions to buy affordable properties abroad.
Moneycorp has seen a significant increase in customers making property-related payments through its International Payments service.
Mark Horgan, CEO of Moneycorp, comments on the Spanish property market:
“We’ve started to see real positives from the growth of the Spanish property market and our office in Spain is currently performing at 29% year on year revenue growth – a significant increase.
“One of the draws for UK buyers is the cheap properties available in Spain as a result of bank repossessions. These tend to arise either from developers whose projects have been repossessed, or individuals who have experienced a change in circumstance such as loss of employment.
“Generally speaking, the better bargains are to be had where developers have had to pass the project back to the bank. These properties are typically apartment blocks and the bank simply wishes to clear the outstanding loan made to the developer.
“Another factor at play is the current strength of the pound against the Euro, which has meant attractive investment opportunities for Brits over the last 12 months. UK growth continues on a strong upward course, while the Eurozone is recovering at a far weaker rate, helping the pound to remain firm.
“A year-on-year comparison demonstrates the current strength of the sterling. In 2013 a European property with a value of €250,000 would have cost £219,300. With the Euro currently trading at €1.2100, a buyer could purchase the same property for £206,611.
“Over the last eight months we’ve seen the British pound strengthen against the Euro as the UK’s economic recovery continues to gather momentum. It’s a different picture for the Eurozone, which has started its recovery from recession but at a far slower rate.
“Since the summer of 2013 the Euro has moved from a high of €1.14 to a low of €1.22, demonstrating a value gain of 6%. The Euro currently trades at €1.19, so today certainly represents a good opportunity to buy Euros.
“The property market in the Eurozone has stabilised and we’ve seen real growth in property-related transactions to southern European destinations. Our office in Costa del Sol is seeing first-hand the resurgence in appetite for Spanish property, and the business is currently seeing stronger performance than our offices in France and Florida. We expect this to continue well into 2014.”
Moneycorp Monitor will provide regular market insight on foreign exchange, international property and trade.