THE property market in La Linea is booming as the long-anticipated Gibraltar treaty edges closer to bringing down the border fence.
Buyers are rushing to snap up properties in La Linea, where prices are far lower than on the other side of the border in the Rock.
Average prices are around €1,600 per square metre, compared with around €7,000 per square metre in neighbouring Gibraltar.
Over the past six months, prices in La Linea have surged 18%, as buyers working in Gibraltar are drawn to the town’s cheaper homes.
Approximately 25% of buyers in La Linea are foreigners, attracted by its proximity to Gibraltar – a hub of fintech, gaming and maritime industries.
Following the dismantling of the border, commuting from La Linea to the Rock will be faster, and many people who work in Gibraltar are considering hopping across the border to get more for their money.
Real estate investors are also flocking to La Linea due to the profitability of rental properties.
According to property platform Fotocasa, La Linea is among the ten most profitable towns in Spain for landlords.
The property gold rush in La Linea is provoking fears that locals will be pushed out as demand and prices rise.
In an effort to prevent this scenario, the City Council and private developers are promoting new residential developments .
Among the planned projects is the development of the El Conchal area, where approximately 500 homes will be constructed.Â
The Gibraltar treaty is currently undergoing scrutiny from the UK government and European Commission.
Once both parties have signed the treaty, it is expected to be implemented on April 10.
The anticipated signing is will trigger the dismantling of the current border controls in a ceremony that Spanish Prime Minister Pedro Sanchez is expected to attend.
Click here to read more Property News from The Olive Press.
