Costa Tropical property more affordable, as pound hits record highs

Good news if you plan to buy property on the Costa Tropical! Late last month, sterling hit a 14-month high against the euro, at 1.2258.

By contrast, a year ago on March 12th the pound was at just 1.1403, meaning it's now up by +7.5% or 8 cents. To put this into context, a £125,000 transfer to Spain will now get you +€10,688 more than last March. So, a Costa Tropical property is clearly more affordable now!

Sterling has risen, because of the divergence between the UK and Eurozone economies. While the UK economy is set to grow +3.4% this year, more than any other major economy, the Eurozone will expand just +1.2%, according to official forecasts. This gives the UK the upper hand, explaining the strong pound!

Moreover, if the good economic news from the UK continues, we can expect the pound to rise higher. For instance, confidence among UK businesses hit its highest since September 2009 last month while the Bank of England has said it may raise interest rates as soon as Spring 2015. All this bodes well for the future, which could take sterling higher!

So in brief then, a strong pound is making Costa Tropical property more affordable this year.

By Peter Lavelle at currency broker Pure FX.

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