Initial worries over the effect the UK’s recent referendum vote to leave the EU would have on the Spanish property market are, on reflection, being viewed as too downbeat, particularly at the high-end of the sector in exclusive residential areas such as Sotogrande.
This is the message that can be taken from a presentation given by the CEO of Grupo Zagaleta, which recently acquired the Valderrama golf course as part of a €200 million luxury property development scheme.
While acknowledging that the so called Brexit vote may supress demand from British buyers in the short to medium term, Mr Jacobo Cestino said the Spanish government already has it in its own hands to more than make up for a decline in demand due to a weaker pound by making a simple change to the existing tax regulations.
Speaking to an audience of architects, developers and suppliers of La Zagaleta at the Goya cinema in Puerto Banús, Jacobo Cestino explained that promoters and developers had long been calling for a tweak in tax regulations for foreigners to put it on a par with rival destinations such as Portugal. He went on to say that such a change would be particularly beneficial for the commercially important high-end sector in continuing to attract British buyers.
Meanwhile, the general business sentiment supports this pretty upbeat feeling. International property brokers Lucas Fox have just released a report showing that there has actually been an increase in enquiries from British buyers interested in property in Spain in the aftermath of the Brexit vote. It would appear a view is forming amongst many leading professionals in the UK that they would rather be part of the EU for professional reasons—even if that means moving across the Channel.
On top of that, ar
eas such as Sotogrande appeal to a far wider clientele than just the British alone. The area is of course also highly popular with affluent Spaniards from all over the country as well as appealing to a global market. A possible capital flight from the UK—already several British commercial property funds have been frozen due to the demand for withdrawals—could actually work to the advantage of exclusive destinations in southern Spain, including La Zagaleta, Marbella and Sotogrande.
The international standing of these areas puts them in pole position to benefit from future capital inflows as international investors look for a safe haven for their money—particularly if there is potential for growth. It is expected Middle Eastern, Chinese and Russian buyers will cool their interest in what has been the dominant market in Europe—London—and turn their attentions to Spain.
Add in the Golden Visa scheme, which gives residency rights and visa-free travel to Schengen zone countries, as well as a little known non-dom law passed last year, and Spain as a whole can be seen to now be an even more attractive destination since the UK referendum on EU membership.
Should you like to investigate the possibility of acquiring a property in Sotogrande please contact us. Holmes Sotogrande has the experience and contacts to find you highly desirable investment opportunities.
By The Holmes Team ·