House prices in Gibraltar have risen faster than in both the UK and London over the past year, despite a steep decline in market activity that has seen transaction volumes almost halve.
New analysis from Enness Global shows that the average property transaction value in Gibraltar reached £587,731, reflecting annual price growth of 2.3%. This compares with average house price growth of 2.0% across the UK and just 0.8% in London over the same period.
The research, based on the latest annual real estate data from the Office of Fair Trading Gibraltar, highlights the resilience of Gibraltar’s property market at a time when buyer activity has slowed significantly.
Over the past year, Gibraltar recorded total real estate deal value of £202.2 million across 344 completed transactions. That represents a 44.8% drop in total deal value and a 46.1% fall in transaction numbers compared with the previous year, pointing to a sharp cooling in market turnover even as prices have continued to edge higher.
Enness Global said the combination of sustained price growth and reduced competition from other buyers could present an opportunity for UK purchasers, particularly those seeking a second home, lifestyle relocation or longer-term investment.
Unlike many overseas markets, Gibraltar also benefits from currency stability for British buyers, with the Gibraltar pound pegged at parity to sterling, removing exchange rate risk from the purchase process.
Tamara Crowson, head of Gibraltar at Enness Global, said the figures demonstrate the underlying strength of the market.
“Gibraltar continues to outperform when it comes to price growth, and the fact that values have risen more strongly than both the UK and London over the last year shows just how resilient the market is,” she said. “That resilience has come despite a notable reduction in transactional volumes.”
She added that the slowdown in activity could work in buyers’ favour. “For UK purchasers who are ready to act, reduced market activity can translate into a stronger negotiating position and access to good-quality stock, particularly for lifestyle purchases or longer-term investment.”
Crowson said Gibraltar’s appeal continues to attract high-net-worth and internationally mobile buyers, but stressed the importance of specialist advice.
“At Enness Global, we structure bespoke finance solutions for clients purchasing in Gibraltar, including complex mortgages, bridging finance and wealth-backed lending,” she said. “Given Gibraltar’s unique market dynamics and borrower profiles, tailored funding and expert structuring can make a material difference when securing both the right property and the right finance.”
The findings suggest that while market momentum has slowed, Gibraltar’s limited supply, lifestyle appeal and currency stability continue to support price growth, even as buyer numbers retreat.
