Excellent time to rent Barcelona apartment, as pound may soon rise.
Are you thinking of renting an apartment in Barcelona this year? If so, whether you’ve got your eye on a 5-bedroom penthouse with a swimming pool and a garden for €140 a night, or a 2-bedroom apartment with monumental views of the Plaza de Toros for €50 a night, you’ll already know how helpful a strong exchange rate is.
After all, if sterling is standing tall versus the euro, you wind up with more euros in your pocket, when you exchange currencies to rent a Barcelona apartment! With this in mind, let’s see what’s in store for the pound in the rest of 2016, especially in light of Brexit!
The good news is that the exchange rate may shoot up, if the UK negotiates a good deal with the rest of the EU, post-Brexit. This could happen, because several senior politicians have spoken up to suggest that the UK could obtain good terms. For instance, last week former German Chancellor Helmut Kohl warned that Europe shouldn’t “shut the door” on the UK post-Brexit.
Moreover, French presidential candidate Alain Juppé said this week that “everything will be on the table” in the Brexit talks. So if the UK does well, and sterling rises, it will become cheaper to rent a Barcelona apartment!
For example, let’s imagine that the UK agrees favourable terms, in which case the pound might jump from its current 1.17, back to 1.43, where it was before prime minister David Cameron announced the EU referendum date. If this happens, you’d obtain a far higher euro total when you exchange currencies, greatly cutting the cost of renting an apartment in Barcelona!
For instance, if you were to exchange £1,000 to rent a 5-bedroom Barcelona penthouse for a week, you’d get €1,400 at an exchange rate of 1.43, or €250 more than at today’s exchange rate. That would be a welcome bonus!
After all, just think what you could do with an extra €250 in your pocket, just because the exchange rate has strengthened. First of all, you might rent a more luxurious Barcelona apartment than you’d originally had in mind, with an extra bedroom, for instance. This would let you bring along an extra friend or family member, to have an even more enjoyable time in Barcelona.
Alternatively, you could use the extra euros to get out and explore Barcelona, using your rented apartment as a base from which to relax. Whatever you choose, you’ll have a great time in your Barcelona apartment!
Given all this then, it’s a fantastic time to rent a Barcelona apartment, as sterling could strengthen versus the euro later in 2016. Make the most of it!
By Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.uk