Gib’s real estate market benefits from ‘Boris bounce’, Chestertons boss says
The Conservative Party’s victory in the recent UK general election has buoyed the local property market as marked by an unusually busy festive period for estate agents.
According to Mike Nicholls, CEO of Chestertons, the Tory victory represents an end to the political in/out uncertainty that has marked the last three years and therefore greater certainty and confidence going forward.
According to Mr Nicholls, Gibraltar experienced its own 'Boris Bounce', mirroring a UK hike in activity in the property markets.
“I am pleased to report that on the first proper working day since the result of the UK election, we have seen an immediate increase in activity, being dubbed the 'Boris Bounce', this positive impact has resulted in an increase in offers, a possible part exchange, a lift in viewings, a number of agreed rentals and even a bidding match on one property,” he said in a note to clients.
“This is unusual. At this time of year we would normally expect to be quieter as people wind down and enjoy the festive build up.”
Looking ahead, one of the most significant factors is likely to be an improved demand for housing amongst those not eligible for Gibraltar Government housing.
“Expect more of the Spanish based employees of Gibraltar companies to move into Gibraltar,” Mr Nicholls said.
“Gibraltar will be the most fiscally attractive location for companies selling services into the UK.”
“Gibraltar’s tax structure will not be threatened to the extent possible under Corbyn or EU interference. Gibraltar can thrive.”
“With this backdrop, confidence returns and companies who have held back investment decisions, held back expansion plans, will now start to implement their plans.”
“Expect increased interest from Malta. Expect more of the Spanish based employees of Gibraltar companies to move into Gibraltar.”
Mr Nicholls added that the shortage of available property in Gibraltar for those not qualifying for local housing was a key concern at the time of the referendum, which prompted the Government to offer tax incentives to investors to buy off-plan property and push the production line.
“The recent completions of Clemence Suites, Imperial Ocean Plaza, Ocean Spa Plaza and Quay 29 will temporarily relieve some of the shortage,” he said.
“We now welcome EuroCity, the Hub, Sylvian Suites and E1 amongst others to further assist those wishing to move in to Gibraltar.”
“Now could be a good time to buy whilst the supply is there.”