Europe takes top spot for overseas property buyers

Laura Stavro-Beauchamp
13-May-2008
Europe remains the dominant region for overseas property investment with six of the top 10 most popular locations found on the continent.
Spain and France still sit at the top of the table, while Cyprus, Italy and Germany performed strongly.

Mark O’Sullivan, director of dealing at Currencies Direct, says: “As ever Spain is the number one retirement destination for Brits, with an abundance of ex-pat communities and plenty on offer for those that move there.

"The Spanish property downturn has not snowballed into a crash, and savvy investors are beginning to look further inland for investment opportunities in regions such as Andalucia, where the properties are more reasonably priced than those on the coast."

He adds: "Brits won’t lose money by investing in the Spanish property market if they avoid over-developed areas and buy wisely in the right location and at the right price.”

The firm has also noted a rise in younger investors buying overseas with under 40s marking Perth, Vancouver, Berlin, Cape Town and Auckland as popular destinations.

O’Sullivan adds: “Traditional expat locations are eschewed by younger investors in favour of those where a more active, outdoors lifestyle appeals.

"The under-40s are also thinking more about investment potential than their older overseas buying counterparts, with all of the top five offering returns for savvy investors that seek out the well-known cities where good rental yields can be secured."

He says hotspots include Perth, which is achieving 15% capital growth per annum, Vancouver, where buyers are anticipating growth in the lead up to and following the 2010 Winter Olympics, and Berlin, where low home ownership figures in the capital mean that finding a tenant is relatively easy for investors looking to rent out their property.