House prices in Gibraltar have risen faster than both the UK and London over the past year despite a sharp fall in market activity according to latest analysis from Enness Global.
Using annual data from the Office of Fair Trading Gibraltar, Enness Global assessed average transaction values as a proxy for pricing, alongside total deal value and transaction volumes. It then compared Gibraltar’s annual price movement with that of the UK and London.
The research shows that the average transaction value in Gibraltar now stands at £587,731, reflecting annual growth of 2.3%. This outpaces the wider UK, where average house prices rose by 2.0% year on year, and London, where growth was more muted at 0.8%.
While prices have remained resilient, market activity has slowed markedly. Over the year, Gibraltar recorded total real estate deal value of £202.2m across 344 transactions. This represents a 44.8% fall in total deal value and a 46.1% drop in transaction volumes compared with the previous year.
BUYER OPPORTUNITIES
Enness Global said the combination of rising prices and reduced buyer competition could present an opportunity for UK purchasers, particularly those seeking a second home or planning a longer-term relocation.
With fewer transactions completing, buyers who are able to proceed may find greater scope to negotiate and access higher-quality stock.
UK buyers are also insulated from currency risk, with the Gibraltar Pound pegged at par with sterling, removing one of the key uncertainties often associated with overseas property purchases.
RESILIENT MARKET
Tamara Crowson, Head of Gibraltar at Enness Global, says: “Gibraltar continues to outperform when it comes to price growth and the fact that values have risen more strongly than both the UK and London over the last year demonstrates just how resilient the Gibraltan market is, despite having seen a notable reduction in transactional volumes.
“For UK purchasers who are ready to act, this reduction in activity can translate into a stronger negotiating position and access to good quality stock, particularly for lifestyle purchases or longer-term investment.”
