Is Gibraltar’s Property Market Overheating?: A Call for Realism
Author: Charles Gomez & Co
Gibraltar Property / Real Estate News
Top analysts in the Gibraltar property industry agree that there continues to be a scarcity of residential property.
This seller’s market is one of the motors powering the new outline planning applications to the Development and Planning Commission.
Despite global and local events which need not be repeated here, because they are in every single news item from dawn to dusk, property prices continue to increase.
In the first three months of 2022, the conveyancing team at Charles Gomez & Co recorded very substantial profits being made by clients, not just in the sale of existing homes, but also on off-plan contracts which have not yet completed.
Not surprisingly, surveyors advising mortgage lenders are now starting to come back with valuations which fall short of prices decided in Reservation Agreements.
Where buyers can obtain any shortfalls from their own resources, this is not particularly problematic. However, where they are dependant on maximum mortgage lending, there is a real risk that a transaction will fall through for lack of available funding.
This is not good for buyers or sellers and that is why experienced estate agents will advise those sellers that sometimes, by going for potentially unrealistic prices which eager buyers may be willing to accept, they all run the risk of a deal falling through with the attendant delays, disappointment, and expense.
As with everything else in life, the lesson here is that it is best to be reasonable.
Are you looking for legal advice? Whether you are buying or selling your home or you require any of our legal services, get Charles Gomez & Co lawyers in your corner.