Do you intend to rent a luxury property in Marbella in 2016? Then excellent news! It’s nowmore affordable to do so, because the pound to euro exchange rate has strengthened compared to 2 years ago. To be specific, sterling has hit 1.25 versus the euro this week, +5 cents higher than at the start of 2014. So, when you exchange currencies to rent a property in Marbella, you’ll get more euros.
For example, let’s say you intend to rent a 9-bedroom villa with a jacuzzi and mountain view in Marbella Oeste, for £10,000 a week. With this sum, today you’d receive €12,500, a full +€500 more than if you’d rented the same villa back in January 2014, when the pound to euro exchange rate was weaker. Hence, that’s an extra €500 to enjoy however you like, while you’re living it up in Marbella!
What’s more, looking ahead, sterling could strengthen further versus the euro. This is because the Eurozone remains in deflation, with prices dropping –0.2% last month, in spite of the European Central Bank’s massive monetary stimulus. This tells us that the currency bloc isn’t growing quickly enough to fuel higher internal demand, keeping a cap on prices and so weakening the euro too!
With this in mind, it’s a fantastic time to rent a luxury Marbella property, as the pound is strong versus the euro.
Article Courtesy of Peter Lavelle