In this second quarterly update of 2024, Louis Montegriffo, Co-Founder of BMI Group Estate Agents, offers an in-depth analysis of Gibraltar’s property market's performance over the last quarter. 

The Gibraltar property market has experienced a significant increase in the volume of properties available for sale and rent. There are 170 to 200 units for sale, a notable rise from the under 100 units in previous years. Similarly, rental availability has surged to 70-100 units from just 10 units a year and a half ago. This increase has led to a market slowdown and a slight realignment in property prices.

Property Prices
General Market: Prices have decreased by 5% to 12%, depending on the market segment.
Prime Properties: High-value prime properties have maintained their rates at £9,500 to £10,500 per square metre.
Average Price: The average property price in Gibraltar is currently £860,000 to £870,000, a slight decrease from last year.

Property Yields
Historically, Gibraltar has seen yields of 4.5% to 5.5% on buy-to-let investments.
Current yields have decreased to between 3.8% and 4.2%.
Buy-to-let investments now face competition from fixed-term deposits, affecting their attractiveness.

Market Drivers
Oversupply: The increase in property volumes, especially studios, has contributed to the price adjustments.
Interest Rates and Inflation: These economic factors have also impacted the market.
Pending Treaty: The anticipation of a new treaty agreement is expected to bring stability and confidence to the market, potentially preventing further price decreases.

New Developments
One Bayside Development: A new, low-density development with 57 units priced at £6,700 per square metre has been successful.
Future Developments: There is concern about high-volume, high-density developments currently under planning, particularly on Devil’s Tower Road, which may exacerbate the oversupply issue.

The Gibraltar property market is experiencing a slowdown, with increased property volumes and a slight price decrease. The market's stability and future growth depend heavily on the upcoming treaty agreement, which is expected to boost confidence and stabilise prices. Investors and buyers should consider the current market conditions, including the impact of new developments and economic factors when making decisions.

The Gibraltar Property Update is a quarterly summary of Gibraltar's property update. Brought to you by BMI Group Estate Agents and delivered by Louis Montegriffo, it provides a market-wide snapshot for those looking to buy, sell and invest in real estate in Gibraltar. This update is produced by Motion Gibraltar.