Gibraltar has a dynamic and attractive residential and commercial property market that draws both local and international investors. Factors that strongly influence the market include Gibraltar’s favourable tax regime, limited land availability, economic stability and high demand from professionals and retirees.
The market offers diverse opportunities, from modern apartments to luxury marina residences and family homes. So, which are the prime locations for a property in Gibraltar?
Popular areas include:
- Ocean Village, known for its high-end apartments, vibrant atmosphere and waterfront views;
- The quieter Queensway Quay for elegant apartments and townhouses;
- The Upper Town area, offering central amenities, historic charm and more affordable properties;
- Families often opt for the houses and villas of the more residential South District, close to schools and green spaces.
- Westside is a densely populated area close to the town centre and the border with Spain. It features high-rise apartment buildings, commercial developments and administrative buildings.
- Eastside is a rapidly developing area that offers great views and access to Eastern Beach. The Both Worlds complex is popular with second-home buyers. Furthermore, the new Eastside urban development project (scheduled for completion in 2026) will transform reclaimed land into a complex with a marina, hotel, around 1,300 residential homes and a business park.
Property Prices
Prices in Gibraltar are significantly higher than across the border in Spain, so many employees choose to live in Spain while working in Gibraltar. However, the tax regime in Gibraltar has no capital gains tax, inheritance tax, VAT, or council tax. Stamp duty is required, but rates are attractive to buyers compared with the UK and Spain. Additionally, high-net-worth individuals may benefit from Cat2 or HEPSS tax status. This provides further tax advantages when moving to Gibraltar.
Renting a one-bedroom apartment in the city centre typically costs between £1,100 and £1,500 per month. In the South District, a two-bedroom apartment costs on average £1,600 per month.
If you’re looking to buy, prices at the lower end of the market currently range from £3,000 to £4,500 per square metre, and from £8,000 to £10,000 per square metre for the upper-end market. Over the past year, the average house price in Gibraltar was £494,909.
The main challenge for Gib’s real estate market is the limited availability of land, given the territory’s small size. This drives up property prices and creates intense competition for the most sought-after areas. The percentage of undeveloped land is minimal, excluding the rocky cliffs and steep sloping upper rock. In fact, an estimated 70% of Gibraltar’s 34,000 population live on reclaimed land, predominantly on Gibraltar’s west side.
Considerable investment by the Gibraltar Government in recent years, particularly in large-scale land reclamation projects and the construction of affordable housing developments, has helped alleviate the housing shortage. Additionally, the past decade has seen the completion of numerous private luxury developments, which have helped bridge the gap between supply and the high demand for these types of properties.
Gibraltar operates under British common law, providing a transparent and well-regulated real estate market. Most residential properties are leasehold and situated in apartment blocks. This means that they are held under a government lease, typically for a term of 99 or 149 years. Freehold properties – where you own the property and the land it stands on for an unlimited period of time – are scarce in Gibraltar.
Understanding local regulations, tax implications, and market trends is crucial before investing. Engaging with local experts and conducting thorough research is crucial to make informed decisions about Gibraltar’s real estate market.
Last Updated on April 3, 2025 by Vanessa Kingwell