Spanish properties in Sterling

Estate agents in Spain are offering property for sale in Sterling in a bid to attract more British buyers as prices in many areas continue to fall.

They are worried that 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.

Last week it was reported that the Pound had fallen 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.

According to Peter Whitehead, sales executive at Hacienda del Alamo Golf Resort, selling in Sterling rather than Euros was definitely worth looking into. 'It is something we are looking at. However, most of the purchasers in this country have a Euro mortgage so it becomes less of a problem. For those that don't, or need a quick sale and a UK buyer is ready, then it is something to examine. It is another selling tool and would definitely be a good sales vehicle.'

The widespread nature of the Euro means that this is not just an issue that British buyers will encounter in Spain, but all across the Euro-zone. Nevertheless, Spanish vendors are particularly worried as they have noticed a decline in activity from the British, who play a vital role in foreign property investment in the country.

According to Colin Guanaria, of Menorcan property agency Bonnin Sanso, the last five sales in the last fortnight 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.'

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.

BOOKMARK THIS PAGE (What is this?)