Cyprus tops investment league again while Bulgaria loses out
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Cyprus has come top in a 2009 overseas property index that awards countries ratings agency-style investment standards.
The index, put together by international property investment firm ROP UK, rates Cyprus AAA, Turkey AA, Greece BBB, France BBB and the UK also BBB.
In 2007, when ROP UK last prepared its report, Cyprus was also on top with a AAA rating, with the top five countries comprising Bulgaria with AA, Greece with BBB, the Far East with BBB and Turkey also with BBB.
ROP UK says it’s not just a thriving property market that can positively affect a country’s rating and adds that brokers advising clients looking to invest abroad should consider markets where there is strong domestic demand due to a shortage of properties.
For example, in Turkey’s capital Istanbul the firm says there is an annual shortfall of some 200,000 residential properties.
It says the lack of a residential property market was the biggest reason for Bulgaria’s ratings plunge from AA to CCC this year.
Kevin Maddison, chief executive officer of ROP UK, says: “Choosing an international property invest-ment for a client involves far more than just looking for the best rate of return.
“Advisers have a duty to undertake extensive due diligence procedures to ensure a deal is viable in the longer term.”
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