Sterling sales boost Spanish property market
By Sue Brown, 14 May 2008
Private sellers are being advised to sell their property in sterling instead of the super strong euro in a bid to attract more British buyers.
The poor performance of the pound against the euro is proving a stumbling block for British investors wanting a piece of the Spanish lifestyle and means that their money is not going as far as they would like. The pound fell to its lowest level against the euro since it was introduced in 1995 and although it has since bounced back a little the pound is still not as strong as it was.
Peter Whitehead, sales executive at Hacienda del Alamo Golf Resort, explained that selling in sterling rather than euros was definitely worth looking into: "It is something we are looking at for those that don’t, or need a quick sale and a UK buyer is ready. It is another selling tool and would definitely be a good sales vehicle."
Bargain online specialists, PropertyInSpain.Net are tagging many of their properties "Sterling sale" telling thousands of their British Buyers they save nearly 20% because the private venders can afford to reduce their prices when they are moving to the Uk or other non euro destination.
The widespread nature of the euro means that this is not just an isssue for British buyers in Spain, but all across the euro-zone. Nevertheless,
The novel way of selling has already been put into practice in the Spanish market of Menorca. According to Colin Guanaria, of Menorcan property agency Bonnin Sanso, the last five sales were agreed in pounds sterling. Guanaria added that it was an ideal solution for many as "a lot of British buyers are unsure of the exchange rate at the moment or would just prefer to deal in pounds."
- One year ago £1 would have bought roughly €1,50 but today it is worth only €1,25. A property valued at €200,000 in Spain will currently set British investors back £160,000 compared to roughly £133,600 the same time last year. The option of selling in alternative currencies has long been open to Spanish vendors, but until now many were unaware of it.