The Gibraltar 2011 Property Market Review

April 18, 2011 - PRLog -- At the outset of the year we predicted the reduction in lending ratios from their height of 95% to 80% for residential properties would have an appreciable impact on the local property market in 2010 and with it would come a significant decline in the first time buyers market.  

Our view that the continuing credit constraints would also halt the construction industry and with it the cessation of new private property developments within Gibraltar also became a reality.  Gone are the endless truck convoys from Spain running back and forth to supply Gibraltar’s booming construction industry, which has seen the creation of new residential areas within Gibraltar.  

These new developments such as Tradewinds, Ocean Village and The Anchorage have all spouted up in the last three years and their success with local and international buyers is a clear sign of Gibraltar’s fundamental economic strength.

Many foreign companies can see the potential of Gibraltar and the benefits of establishing a presence here, and the new airport combined with hopefully easier traffic access to and from Spain will further bolster our infrastructure and increase our appeal with major corporations and investors.  The recent announcement by a UK based hotel group to develop a new 160 bedroom hotel and 3000m² of modern office space in Devil’s Tower Road is already testimony to this.

The Government too recognised that funding is a major obstacle for the creation of commercial developments.  Without readily available office space Gibraltar runs the risk of turning away major international corporations – all of which play a pivotal role in our growing economy and housing market.

This year however has not been a negative one despite the finance constraints faced by willing buyers.  The reality is that although finance is harder to attain, the last twelve months have reaffirmed our opinion that Gibraltar’s property market is fundamentally sound and will not suffer the price drops witnessed in other parts of Europe.

In 2011 we expect to see a similar pattern to that of 2010– that is a healthy turnover of resale properties, a minimal supply of new private housing and an acute shortage of modern office premises for incoming corporations.  Hopefully, the Government will do its utmost to assist the construction industry and in so doing ensure our continuing economic growth and stability.

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Gibraltar's Leading Estate Agents and Property Consultants specialising in residential and commercial resales, new developments, lettings, surveys and valuations.