UK Betting Tax Decision Leaves Gibraltar Property Market In Pessimistic Mood

Iberia News

27 March 2001

This story is reproduced by kind permission of Iberia News at: http://www.iberianews.com

As the news of the betting industry leaving Gibraltar was announced several weeks ago, the property market has indicated the concerns over what they see as possible slump in the market.

The rental market is believed to have been saturated due to the increase in rentals since the arrival of the betting industry into Gibraltar. Prices also reached an all time high with over more than a 50% increase in the value of property being seen as the economic situation in Gibraltar changed overnight with investors in the property market increasing.

The announcement of the departure by betting industry personnel is seen as an indication of the down turn of the market, which many industry experts already believed required readjustment as property prices seemed to reach excessively high levels, and many believed this could not be sustained for a prolonged period of time.

Although the real estate industry is already talking of a possible slump, developers have indicated their optimism, with luxury projects already underway, and government projects offer 50-50 basis accommodation already having been tabled.

This says one developer, "will allow for the market to continue offering affordable accommodation, and be able to give increase luxury accommodation in Gibraltar which after the sell out of the latest developments has seen an increase in the numbers waiting to buy luxury accommodation."

Large numbers of investors are said to have shown an interest in new luxury apartments , with areas such as Sunset Close and Battery close have been huge success. Property investors are paying upto £400,000 for luxury accommodation, with many committing themselves to purchasing property before it has even been constructed, indicating the immense interest being shown in Gibraltar for high quality luxury apartments.

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