International Property - 15 Years of the Euro
THE STORY SO FAR
The 1st January 2017 marks 15 years since the Euro was introduced as the primary currency of the European Union (EU). Initially, it was adopted by 12 EU countries including France, Germany, Italy and the Netherlands.
Our analysis looks at how the change in the EUR/GBP exchange rate over that time has provided opportunities for British and Eurozone property buyers to benefit from currency movements in the other’s market.
Despite its short but eventful history, these opportunities have been plentiful. The chart below shows some of the keys events which have moved the EUR/GBP rate.
For example, a Sterling-denominated buyer purchasing property in the Euro-Area in January 2002 (€1.62/GBP) and then selling when the Euro was at its highest since its inception against the Pound at €1.09/GBP would have seen a 49% gain on a currency basis alone.
Conversely, a Euro denominated buyer who purchased property in the UK in March 2009 (€1.09/GBP) and then sold when the Pound was at its post financial crisis high against the Euro at €1.41/GBP would have seen a 30% gain on a currency basis alone.
Courtesy: Knight Frank
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Taimur Khan
Kate Everett-Allen
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© Knight Frank LLP 2016 – This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.
