What will happen in 2017? Property experts share their predictions

2016 was an eventful year, from the UK’s decision to leave the European Union to the election of Donald Trump as US President. Nonetheless, the property world kept on spinning, with investors adjusting to take advantage of market conditions and currency exchange shifts.

What’s in store for property in 2017? From UK hotels and US buy-to-let to Spanish holiday homes, TheMoveChannel.com asked experts to share their predictions:

1. Spain – Golden Properties

Spanish market enjoyed healthy growth in 2016

“The Spanish market showed healthy growth last year and is one of the most undervalued housing markets in the world, according to a key benchmark by the Organisation for Economic Development, which measures property prices in relation to income. There are great opportunities to be found there and we’ve been putting a lot of focus on locating those for our clients.”

Brits will increasingly targeting budget properties

British buyers still appear active in Spain this year, but are compensating for the pound’s weakness against the euro by focusing on more affordable opportunities:

“It is yet to be clear what impact the recent devaluation of the pound will have long term on the Spanish market, especially in places like Costa Del Sol and other holiday destinations but we’ve been seeing a major increase in inquiries for Spanish properties under €50,000 from British investors. That could indicate that investors are still buying but just going for lower prices.”

Coming soon to the market…

“We’ve been working with one of Spain’s largest banks to bring excellent below market value properties with 100 per cent finance to our investors. With buy-to-let mortgages being increasingly harder to acquire and the heavy tax burden placed on investors in the UK for example, these deals offer an incredible opportunity for investors to expand their portfolio with minimal capital outlay. We’ve also been able to offer guaranteed rental agreements on many of these properties which removes most of the risk of buying properties overseas.

“This opportunity has been attracting investors worldwide to Spain, especially from East and Southeast Asia as well as Australia and New Zealand. These investors recognise the immense capital growth potential in the market.”

2. UK (Residential) – Aspen Woolf

The fundamentals of the UK housing market are unchanged post-Brexit, say Aspen Woolf.

The market’s fundamentals are unchanged post-Brexit

Supply continues to fall short of demand, which is underpinning house prices, explain the property investment firm:

“The current state is very much following on 2016. Of course we’re awaiting to hear whether the Parliament has to vote on a soft or hard Brexit, which will undoubtedly play a role in the industry going forwards, but at the moment things are moving very much in line with the end of 2016. Housing supply continues to be at a staggering low, with demand increasing yearly. That won’t change overnight.”

The pound may weaken, but it won’t affect the market more than it has

With the UK’s exit from the EU no longer a surprise, the market is already braced for the coming year:

“Dependent on the outcome in March, our currency might take a bigger hit. However, that said, the world already knows what the UK decided. It’s not going to be any new news. We all know the button will be pressed in March, so, for sure, there might be a small adjustment period in currency again, but we don’t expect it to affect the property market more than it has already. If anything, we would assume to see an increase in foreign interest due to the currency advantage they have. On the other hand, it also restricts domestic buyers to keep their property interests at home instead of buying elsewhere. For the short term, anyway. In a nut shell, we expect 2017 to remain rather similar to 2016. The real thing we are watching out for now is whether or not it will be a soft or hard Brexit.”

Housing crash is not on the cards

“We’ve witnessed an increase in foreign buyers looking to take advantage of the currency exchange rates back in 2016. The fact is the supply is at all-time ridiculous lows and the demand for housing just keeps increasing, and that won’t change over Brexit, so we don’t really see a massive housing crash imminent in the future. People in the UK will still be looking for homes and a place to live and, even if the UK does leave the EU, that won’t change. The same people will still be looking for a place to call home.”

“The Brexit has only mildly affected experienced investors looking to expand on their portfolios internationally, and those are the ones that would rather keep their money at home than risk putting it into Europe due to not knowing what the outcome of an international purchase might be to them. This, though, will undoubtedly smooth itself out as things become clearer, but, of course, people will be cautious in the start, which we’ve already seen with our domestic investors in 2016 looking to invest abroad.”

Coming soon to the market…

“We have two new projects that we’re really excited about. The first will be in Liverpool, a new residential development looking to bring back a gorgeous Grade II listed building. We love seeing projects like this and love working on them. Not only do they provide housing, but they help keep the history and story of an area alive. It’s always sad to see buildings torn down or forgotten about. This development has a real past and connection to the L3 area of Liverpool and we already know locals are excited to see it being brought back to life. We can’t wait to be able to launch it at the end of the month.

“The second will be launching a bit further down the line. It will be located down in Plymouth, which is exciting, as we’ve not had a development come onto market in that area yet. It’s an area that could really do with some modern development and has been overlooked a lot until recently.”