Murcia Property Now Cheaper, as Pound Hits 21-Month High
There’s fantastic news if you intend to buy a Murcia property with Alquilo Tu Casa this year! The pound to euro interbank exchange rate has reached 1.1717 recently, its highest in 21 months, or since May 17th 2017.
As a result, when you transfer money from the UK to your Spanish bank account, you may get a significantly higher euro total than in recent months. So whether you plan to buy a top 4-bedroom chalet in Monovar-Monover for €197,600, or a fab 5-bedroom apartment in Palencia for €150,000, this significant rise in the pound to euro exchange rate may be in your favour.
To put this recent 21-month high interbank exchange rate into context for you, back on January 1st 2019, sterling was as low as 1.1087 versus the Eurozone’s common currency. So, the pound has since strengthened by +5.68%, or over +6.25 cents!
At this interbank exchange rate, £250,000 would be worth €292,925. That compares to just €277,175 at the start of 2019. Given this, sterling’s rise versus the euro in the last 2 months is worth an additional +€15,175! This may make buying your dream Murcia property much cheaper for you, when you transfer money to Spain!
What’s more, looking forward, sterling could climb higher versus the euro. This would make purchasing real estate in Murcia even cheaper for Brits. This is because:
- The UK looks closer to an orderly Brexit, which could be good news for the pound.
In particular, the UK now looks less likely to crash out of the EU with a ‘No Deal’ Brexit at the end of this month. This is because UK prime minister Theresa May is giving MPs votes, both on whether to extend the UK’s Article 50 negotiating window, and to rule out a ‘No Deal’. If so, this would give greater certainty to UK businesses and businesses, and may influence the exchange rate!
- Sterling could strengthen against the euro, as Eurozone business lending has eased.
In particular, lending to Eurozone businesses eased to +3.3% in January, said the European Central Bank this week, below December’s +3.9%. This suggests that company owners in the common currency bloc are less willing to borrow, given the Eurozone’s ongoing economic slowdown. In turn, this could weigh on the Eurozone’s GDP growth this year, which could impact the pound against the euro!
- The GBP vs EUR exchange rate may fly higher, as the Eurozone’s economy has slowed.
What’s more, sterling could find strength versus the common currency in 2019, as the Eurozone’s GDP growth has put on the brakes. For example, Germany’s economy stagnated over October to December last year, while Italy’s GDP has contracted. Meanwhile, France is being held back by the ongoing ‘yellow vest’ protests.
So it’s a top time to buy Murcia property, which is also helped by the fact that the exchange rate has strengthened considerably.
By Peter Lavelle at foreign exchange broker Pure FX, a trading name of Foreign Currency Direct Plc, https://www.purefx.co.uk
Please note the rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which Pure FX offer. For live trading levels contact one of our currency brokers on 01494 671800.
This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information.