OPW KEY FACTS…
BUYING IN THE INTERNATIONAL PROPERTY MARKET

WHERE DO MOST BUYERS INVEST?
Most buyers from the UK and across Europe invest close to home in locations such as Portugal, Spain and France. Traditionally, western Europe has been a favourite but over the last ten years, a proportion of purchases has diminished in favour of south east Europe (Greece, Turkey and Cyprus) the Caribbean and the US.

WHAT DO EUROPEAN INVESTORS GENERALLY PURCHASE?
Most purchasers look for a three of four bed property in a peaceful location on the coast. Approximately half of British overseas properties are near the coast, another third are rural and only 7% are inland urban locations. There has been a huge surge in buying within planned resorts, with investors attracted by the onsite amenities and convenience of the letting management services.

WHY DO BUYERS INVEST ABROAD?
The majority of buyers want to use their property as a holiday home, for inheritance reasons or retirement purposes. On average, the property is used for 12 weeks annually, and let for a further 15 weeks. Owner’s whose holiday homes are located in European countries which are more easily accessed, use their properties more frequently than those with properties in long haul destinations.

HOW HAS THE WEAK POUND AFFECTED BUYERS?
The latest research paints a very positive picture for recent overseas buyers. Many Brits who bought properties in the last four years have seen substantial jumps in value. This is due to the Sterling value being boosted by the fall of the pound compared with the Euro. For example, between 2005 and 2009 an average property in Italy rose in value by 30%. However, as the Euro increased in value by 27% against the pound, the actual sterling value of the property was 66%.

FUTURE OUTLOOK
Many second homeowners have reported they are considering buying another property, which demonstrates the attraction of overseas investment is stronger than ever. The bulk of sales in 2010 and beyond are likely to be in established hotspots including France, Portugal and Spain (notably the Balearics). For those who are in a position to buy, there are many great opportunities to invest at significantly reduced prices.