Traditional hot spots top overseas property investment list
15.10.2009
British buyers are sticking to the more traditional overseas locations in the current economic climate, especially those with history of providing good rental returns, according to Conti, the UK based overseas mortgage specialist.
According to the company’s latest 'hot spots' report, France is in top spot by accounting for 31 per cent of enquiries received by the company this year, followed by Spain with 22 per cent.
Enquiries for both locations have increased considerably since 2008, which appears to show that overseas property investors are shunning the emerging markets and concentrating on the more established destinations.
Turkey has maintained third place in the table and increased its share to 13 percent. Portugal and Italy have also advanced up the table, to fourth and fifth places respectively, whilst interest in both Bulgaria and the USA has declined over the last year.
Clare Nessling, Conti's Operations Director, said: “The smart investor is no longer simply looking to where the best bargains for a swift return can be found, but to where security lies for a longer term investment.”
Portugal and Italy, having experienced a drop in interest last year, are both enjoying a revival, moving up to fourth and fifth places respectively in the Conti hot spots table. Buyers in Portugal have been attracted by lower prices - up to 30 percent in some locations. The market in Italy remains strong, and property can still be profitable acquisition.
The USA has experienced a fall in demand due to the stronger dollar making it more expensive for British buyers. And interest in Bulgaria and Cyprus is also down on last year.
“Last year, the concentration of some investors on emerging markets was starting to erode the lead of the traditional ones. This year, the tables have turned.
“Buyers are sticking to locations they know and trust, but it's not that alone. Affordable prices, low interest rates, easy access and good rental yields have all contributed to the enduring attraction of these destinations,” Nessling added.
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