The time is right for property investments abroad as the British pound is gaining strength against the euro, according to new research from Spot Blue International Property.
The stronger pound means that for UK buyers the price of property in the eurozone has fallen by around 10 per cent since the start of the year. In real terms, a €150,000 home in Spain, Portugal or France is now – at the end of July – around £12,000 cheaper than it was at the start of the year, Spot Blue has estimated.
The combined impact of a favourable exchange rate, signs of recovering foreign property markets and improving mortgage availability is expected to drive UK buyers’ confidence in purchasing a property in Europe in 2015, the property firm projects.
The interest in Spain is growing as the country’s economic recovery, increasing tourist numbers and good future prospects attract positive attention.
“There is evidence of not just price stability but also rises in some major cities and established parts of the Costa Blanca, Costa del Sol and Mallorca, an island that according to new research by the valuation consultancy Tinsa is home to five of Spain’s ten most expensive property hot spots,” Julian Walker, director at Spot Blue International, comments.
“The struggling new-build sector could be due to limited supply of quality new projects in desirable areas. Today’s buyers of new-build are discerning and understand the benefits – 10-year guarantees, potential capital appreciation, the chance to customise fixtures and fittings, and that modern, efficient building materials are used,” Walker says.
In Portugal, the latest RICS/Ci survey indicates a recovery is well underway, with rising enquiries for property and agreed sales, and an expected rise in property prices. Confidence in Portugal has been bolstered by the improving lending conditions and rise in mortgage applications.
“Banks and lenders saw a hike in enquiries after Portugal made a clean break from its bail-out last year. But this year, the exchange rate has triggered those enquiries into applications from British buyers,” Walker comments.
Outside of the eurozone, sales in Turkey’s property market saw consistent growth for the first five months of 2015, to the point that in May purchases by foreigners hit a record level and achieved a 21.3 per cent rise compared to the same month last year.
According to the Turkish Statistical Institute (TurkStat), sales of Turkish real estate to non-Turks rose 19 per cent between January and May compared to the same period in 2014, with 8,097 properties bought by foreigners. Istanbul and Antalya on the south-west coast are the most popular buying areas with foreigners.
