Emma Labrador recently joined the Hassans real estate team as a partner. Here she gives us her perspective on the Gibraltar property market and the change in investment behavior as a result of the pandemic.
Q: Now that the economies are starting to slowly recover from the pandemic, is there any industry in Gibraltar that you believe has not been affected during the pandemic, or should recover sooner than others ?
The real estate market certainly seems to have remained untouched by the pandemic, with a very high number of real estate transactions having taken place in Gibraltar during this period. The foreclosure has encouraged many people to move up the property ladder and buy a new home and many of them have not moved and embarked on home improvement projects. It seems spending so much time indoors made people think more about where they lived and where they wanted to live.
Post-pandemic, we have seen a continued volume of work in residential and commercial properties from local and international clients. There has been an increase in work in commercial property, likely in response to the post-pandemic economic recovery, with higher demand for commercial premises.
Q: How have recent developments impacted your area of practice in Gibraltar?
Gibraltar has seen an influx of new property developments resulting in a high volume of work for our property team. Arengo’s Gardens has recently been completed with Bado’s Gardens and Sylvian Suites being the next developments to be completed. The Reserve, North Gorge, Forbes, Carlton House, Marina Club, the next phase of Mid-town are all underway and the next steps after that of even bigger developments such as Victoria Keys and the Eastside project are coming to fruition.
Q: What is the current state of the property market in Gibraltar?
The property market continues to boom in Gibraltar, with property prices continuing to rise. This makes the Gibraltar property market extremely attractive to investors, owners and owners, many of whom are local. With land so limited, prices per square meter continue to rise, with some properties selling for between £8,000 and £12,000 per square metre.
Q: What is the most notable change and/or shift you have noticed in the real estate industry over the past few years?
While previously investment in the real estate market was thought to come from outside investors, with locals just getting into the real estate market, more recently we have seen a higher volume of local investors, at the both on a small and large scale. Additionally, we have seen more locals take on development projects.
Due to the high end developments being built in Gibraltar and now available, we have noticed a wider trend of residents using their funds to purchase high end properties in Gibraltar for their own family use. Whereas previously it was more common for families to invest in a second home outside of Gibraltar, such as in Spain, it now appears that families are keeping their investments in Gibraltar and buying upscale or larger properties in Gibraltar for their own pleasure.