The property market is facing new challenges as the outcome of the UK-EU agreement on Gibraltar is causing concern.
In an interview with David Revagliatte for the Gibraltar Business Podcast, Louis Montegriffo from BMI Group Estate Agents commented; “The biggest concern I’ve got, and most people have, is the agreement and the uncertainty it brings to the market. It’s funny, because politically in Gibraltar, we’ve had uncertainty for 300 years, and economically when we’ve developed our economy, we’ve had uncertainty from the ’90s into the 2000s, so there’s always been something. Historically, if we look at those hurdles we’ve had before, we’ve always come out of them well; but this one is slightly different.”
Louis notes a shift in demand and a trend towards owner-occupier driven properties, with increasing demand for larger properties such as large two, three, and four-bedrooms and large one-bedrooms. This shift in demand is seen as a positive sign for the local economy, as it reflects both Gibraltarians and expatriates investing in properties to live in, rather than purely for speculative purposes.
“These things change dramatically, but over the past couple of years, I think what’s come through in high demand has been owner-occupier driven properties, so larger properties. Not necessarily just two, three, or four bedrooms, also large one bedrooms, but I think it’s a great sign of how the economy is doing.”
While rising interest rates are also a source of concern for Mr Montegriffo, he feels Gibraltar’s property market can ride the storm, “If you went back to the last time interest rates were high back in 1990, the property market was annihilated, prices went down 50%, 60%, 70%. I’m not of the view that we’re going to see what happened in 1990, but I am of the view now that things are adjusting – the property market is plateauing. I think that’s a good thing, but the outcome of the agreement is the key.”
A full interview with Louis Montegriffo features in the latest season of the Gibraltar Business Podcast, brought to you by the GFSB. Listeners can find the podcast on all major podcast platforms, including Apple Podcasts, Spotify, and Google Podcasts.
For more information on the Gibraltar Business Podcast and upcoming episodes, visit the website at https://gibraltarbusinesspodcast.buzzsprout.com
David Revagliatte, Host
Gibraltar Business Podcast
Phone: +350 54059479