Sterling Jumps Massively Against Euro, Property Investors Likely to Pounce

The Pound has jumped massively against the Euro. Yesterday it had fallen back to 1.11 but today it has climbed to its highest point since its massive plunge: 1 Pound is currently worth 1.24 Euros.

Meanwhile Eurostat revealed today that the European Union gross domestic product shrunk by 2.5% in the first quarter of 2009 compared to the previous quarter, bringing the year on year decline to about 4.5%.

Whatever the reason, this is the kind of massive jump that economists forecast, and that British property investors and funds have been waiting for, because it makes Eurozone property a further 10% cheaper to British buyers.

I would expect them to start snapping up bargain property in France and throughout Europe if Sterling holds its ground.

By Michael Sutton - 2009-05-15 21:10:42

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Filed under: Overseas Property, European Property

Tagged: Euro | Sterling | Currency Exchange rates | Property Investment |

About the Author: Michael Sutton

Michael is a staff writer with SEO company Write About Property.

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Comment By: Niklas

Date: 2009-05-16 14:58:33

Comment:
Hey, this isn't true. You must have misunderstood something? 1 pound hasn't been worth 1.24 euros since the beginning of November last year...

Comment By: Michael Sutton

Date: 2009-05-17 08:41:23

Comment:
Hi Niklas,

I can see why you would think this, as it is now back down to 1.12. I have also looked at news articles and it seems unlikely that Sterling hit 1.24.

I can only assure you that when I looked at xe.com that is exactly what it was showing. Previously I made a mistake by counting 1.113 as 1.13, so this time I checked and double checked and it was definitely showing 1.24, whether it was a mistake on xe or what I do not know.

I will be calling xe.com tomorrow to see if they can explain this.