Investors Buying Property Abroad as Prices Fall12/07/2012
According to latest reports, European countries where real estate risk can be easily managed have become hot destinations for property investments. At a DTZ webinar held recently, DTZ’s Associate Director of forecasting Matthew Hall said that while it is true that there is a lot of volatility in the real estate markets in many countries, there are still many opportunities that savvy investors can take advantage of.
Making hay while the sun shines in Spain
Presently, because of Spain’s economic difficulties, the county’s real estate market is witnessing negative sentiments. But foreign investors are making the most of Spain’s low property rates and are lapping up property. Spanish properties have seen a huge surge in interest, since the slump in real estate prices, the biggest since the financial woes started in 2007.
Overseas mortgage specialist Conti has said that there is a 33 percent rise in inquiries about Spanish mortgages, over the last few months compared to previous averages. Claire Nessling, Conti Director has said that the Spanish market had reached a new low. Buyers have naturally taken advantage of this to shop for bargains.
With the Pound Sterling going from strength to strength against the Euro, Britons are leading the pack. The historically low rates are making property purchase in Spain more affordable than ever before.
The downside in real estate prices has not even spared the idyllic Canary and Balearic Islands which include Majorca, Ibiza, Formentera and Menorca. These holiday destinations are very popular with tourists and travellers. Property rates on the islands have fallen by as much as seven percent over the last year. For investors seeking holiday homes, this is very good news.
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