We are struggling! ……. Yes, I thought that might get your attention.

We are in fact struggling with both our lettings and sales portfolio, both of which are diminishing.

 We had said that the market was buoyant and we had predicted that demand would at some point 

outstrip supply!

Ladies, Gentlemen, Prophets of Doom, Sceptics, all those who dismissed my quarterly rants of 

cautious optimism………………… we have arrived!

The past few months, (since I last put pen to paper) have been truly extraordinary. The demand for 

lettings has left us with what can only be described as a lettings portfolio on a hunger strike, we are 

running at an average of 5 properties and know of other agents with zero on their portfolio.

In turn the price hike generally across the board has been quite spectacular with several of our 

portfolio Landlords re-confirming that there statements showing increased yields are indeed correct. 

Note of course that we have just come out of a lettings market driven by oversupply resulting in a 

weakened market. Just to be clear and for the avoidance of doubt, we have seen some units jump in 

price by up to 25% over a period of just 3-4 months.

The sales market has been no different, with the overriding factor being lack of supply and wellpriced properties, many of which we had highlighted as good value, being sold over the past few 

months.  Clearly we are massively encouraged by this and dare I say it again, we had suggested that 

this would be the case. Sales are buoyant across the entire three main markets (low, mid and high) 

with the mid and high end properties seeing the healthiest margin and higher volumes of sales. 

This may be driven by that fact that the recent developments of Waterport Terraces, Nelsons and 

Cumberland estates may have taken a little of wind out of the sails at the lower end.

Another market which is seeing strong growth is the £1m plus market, yet again a factor we have 

also been making reference to over the past 12 months and a clear indicator of the calibre and the 

confidence in our economy by some of the wealthier clients in Gibraltar. We are of course delighted 

that BMI was involved in the sale of Lind House and Beaulieu House (in the South District), both of 

which will see a massive improvement of the area with two or three stunning Villas developed on 

the plots.

I guess the question that you may ask yourselves is why? …more importantly why now? 

Well, we think that there are various factors surrounding the evident strength in the market and 

we believe that the obvious indicator is clearly demand outstripping supply. Importantly though, 

it would also be fair to include the fact that the economy, as indicated by the Chief Minister in this 

year’s budget, is strong with growth in GDP of 7.8%, GDP per capita of £41,138 placing us in 4

position globally and a net debt of approx. 24% of GDP.

Clearly the above measure up to a robust and confident economy and adds a great deal of weight 

to what we consider underpins the main reason to our recent success’ in the market; that being 

Gibraltar and the product. Some may argue that it’s the influx of ex-pat Spanish residents returning 

to Gib,  or a local market able to move up the ladder given improved earnings and existing equity, or 

the increase in HNWI’s leaving their high taxed homeland and taking up residency on the Rock – the 

fact is that it’s all of the above combined that delivers the answer on why the past few months have 

pushed up the property market to the levels that we are experiencing.

Wishing you all a great summer ahead and in the fine words of Mr Richard Quest, whatever you are up to, “we hope its profitable”!..

Yours Sincerely

Louis Montegriffo

Managing Director