Price of Marbella property falls, as pound gains versus euro
The cost of buying a property in Marbella and Costa del Sol has declined, as the pound recently hit a 14-month high against the euro.
It may interest you to learn that the cost of Marbella and Costa del Sol property has fallen considerably lately, as the pound recently touched a 14-month high against the euro. Late in February, sterling hit 1.2258 versus the euro, its strongest since January 10th 2013.
By contrast, the pound was as low as 1.1371 on March 12th last year, so it’s since jumped +7.8%, or almost 9 cents. To put this into context, were you to transfer £125,000 to Spain to buy a Marbella or Costa del Sol property, you’d now receive +€10,688 more than in March last year.
Sterling has climbed, because of the upbeat outlook for the UK economy. For instance, confidence among British shoppers recently hit its highest since November 2010, according to a poll by Lloyds Bank. Moreover, the UK economy is forecast to grow an impressive +3.0% this year.
All this has lifted the pound, because it makes the UK a more attractive place to invest, thereby lifting demand for sterling on the financial markets. So in brief, your sterling will now stretch further when you buy a Marbella or Costa del Sol property!
25.03.2014 By Peter Lavelle at currency brokers PURE FX