There’s helpful news for you if you intend to buy a property in Marbella with Alpha Estates Marbella this year. So far in 2019, since January 1st, the pound to euro interbank exchange rate has risen by +4.63%, or over +5 cents, from 1.1087 up to 1.1601 at the time of writing.
As a result, when you transfer money from the UK to your Spanish bank account, you might potentially get a higher euro total, compared to the start of the year. In turn, this might now make achieving your goal of buying real estate in Marbella more affordable for you, compared to 3 months ago.
Marbella Property Now Potentially Cheaper Than at Start of 2019
Let’s put this rise in the sterling versus euro interbank exchange rate into context for you. Imagine that you plan to transfer £265,000 to Spain in the next few weeks, to buy a luxury 2-bedroom apartment in Fuengirola with sea views.
At the interbank exchange rate on January 1st of 1.1087, this sum would have been worth €293,805.50. By comparison, at today’s interbank exchange rate of 1.1601, this sum would be worth €307,426.50.
That’s an increase of +€13,621 in the last 14 weeks. So it’s straightforward to see how this may make buying Marbella property more accessible.
Pound Rises Versus Euro, as “No Deal” Brexit Looks Less Likely
A big reason why the pound has risen versus the euro so far in 2019 is because financial markets feel much calmer about the outlook for Brexit. In particular, it’s now thought unlikely that the UK will crash out of the European Union without a deal.
This is because, first, the UK Parliament has voted several times to rule out a “No Deal” Brexit. In addition, the EU recently extended the UK’s Brexit timetable to October 31st.
This suggests that the EU still feels good will toward the UK, and wants to reach a deal. So this has helped lift the value of sterling against the Eurozone’s currency.
Sterling Gains in Value, as UK Economy Outperforms Eurozone
In addition, another factor why sterling has increased in value by over +5 cents versus the euro this year to date is because the UK’s economy is performing comparatively well.
For instance, we recently learnt that Britain’s economy expanded by a solid +0.2% in February, even with the Brexit uncertainty.
Meanwhile, the European Central Bank (ECB) has repeatedly cut its growth forecasts for the Eurozone. Recently, ECB President Mario Draghi hinted that he may unveil further monetary stimulus, to support GDP growth. So this too then has helped to boost sterling.
To conclude then, the pound to euro interbank exchange rate has risen notably since the start of this year. When you transfer money to Spain, you might now get a significantly higher euro total in your Spanish bank account, compared to on January 1st. This contributes to make this a top time to buy property in Marbella.
By Peter Lavelle at foreign exchange broker Pure FX, a trading name of Foreign Currency Direct Plc https://www.purefx.co.uk
+44 (0) 1494 671800
Please note that the exchange 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 +44 (0) 1494 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.