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Property in Lanzarote may become better value for UK residents this year, as pound set to rise

Property in Lanzarote may become better value for UK residents this year, as pound set to rise

Check out our guest blog by Peter Lavelle, foreign exchange broker at Pure FX  in which he gives his thoughts on the future value of the pound relative to the euro.

We would love to hear if you agree, or not. Feel free to add comments below the article. 

Are you thinking of buying a property in Lanzarote this year? If so, whether you’ve got your eye on an excellent 1-bedroom apartment with a swimming pool in Puerto del Carmen for €150,000, or a 4-bedroom villa close to the town centre in Playa Blanca for €295,000, you’ll want the best exchange rate.

 

After all, the higher sterling climbs against the euro, the more euros you’ll receive in your Spanish bank account, when you transfer money to buy a Lanzarote property! With this in mind, let’s take a look at what’s in store for the exchange rate this year, and how this could benefit you.

 

The good news is, sterling could well climb against the common currency this year, giving you more euros to buy your ideal Lanzarote property. The pound to euro exchange rate may strengthen, because the UK economy has showed itself impervious to the vote for Brexit, back in late June.

 

For example, UK GDP rose +2.2% between October and December, faster than any other member of the G7. What’s more, the Bank of England recently praised the UK’s “resilient consumer demand.” This could lift the exchange rate this year, boosting your budget in euros to buy a Lanzarote property!

 

Moreover, sterling could also fly higher versus the euro, because National Front leader Marine La Pen stands a respectable chance of winning France’s presidential election, in late April. For instance, according to a new IFOP poll, 22.5% of French voters intend to vote for Ms. La Pen in the 1st round, ahead of any other candidate.

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If Ms. La Pen wins, she’s promised to take France out of the Eurozone, and even hold a referendum about France’s EU membership. This would certainly lift sterling against the common currency, cutting your costs when you buy a property in Lanzarote this year!

 

In addition, the exchange may also rocket this year, making buying your dream Lanzarote property more affordable for you, because Greece’s euro membership is in doubt again. To be specific, IMF director Christine Lagarde recently warned that Greece’s debt is “highly explosive” and that Greece “cannot grow out of its debt problem.”

 

Yet the Eurozone prefers not to offer Greece debt relief. Given this, Greece finds itself between a rock and a hard place, and may bring back the drachma to make its debt sustainable. This could weaken the euro, benefiting you when you buy property in Lanzarote!

 

With all this in mind, it’s looking like a fantastic time to buy a Lanzarote property, whether you intend to buy a 2-bedroom townhouse in Marina Rubicon for 269,000, or an apartment with beautiful mountain views in Playa Blanca for €85,000. Make the most of it!

By Peter Lavelle at foreign exchange broker Pure FX 

The opinions, representations and statements made within this guest article are those of the author and not of LanzaroteProperty.com. Any copyright remains with the author and any liability with regard to infringement of intellectual property rights remain with them. The company accepts no liability for any errors, omissions or representations.



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