UK Minister for Europe Leo Docherty had an online meeting with Gibraltar's Deputy Chief Minsister to discuss a no-deal with Spain at their post-Brexit treaty talks yesterday.
The meeting centred on 'discussions on contingency preparation for no negotiated outcome' from ongoing EU treaty negotiations, the government said in a statement.
It follows recent rounds of talks to establish an EU traety with Spain that would remove the frontier.
"The UK and Gibraltar are commited to reachin an EU-UK treaty, and continue to work towards that aim," Garcia said.
If all sides cannot agree a treaty, Gibraltar would be left facing the EU's southernmost border.
What does this mean for Gibraltar's property market?
From our Sales & Lettings Manager, Paul Gibbens MNAEA: "The biggest upset to any market is uncertainty. Whatever happens regarding the frontier and any post-brexit treaty, a definitive outcome either way will be positive for the market.
"If the border is more open, then the Gibraltar vs. Andalucia markets will see-saw up and down as the price gap between the two areas goes up and down, encouraging people to move one way or the other.
"This is an effect seen in any major city; as people move OUT, then the values in the city drop and the suburb values increase. This leads to people then moving IN, as the price gap is smaller, causing city prices to rise and suburban prices to fall. This constant see-saw between the two areas ensures a constantly moving property market which is good for the economy as there are many peripheral businesss (lawyers / removals etc) who rely upon it.
"If the frontier becomes more restrictive, it will be harder for Gibraltarian or British people to live outside Gibraltar and conduct business, scholing etc inside Gibraltar. This effective retention of people within our territory with little option to move elsewhere will mean higher demand here.
"Whatever is agreed is in the hands of politicians and, with Gibraltarian, British and Spanish governments working together we have to trust that an outcome of whatever result isn't too far away. We have a 'coiled-spring' of a market in Gibraltar waiting to be released. Once we have certainty in either direction we will see the power that this coiled spring can deliver. I believe 2024 and 2025 will turn out to be strong years for the property market."
