Overseas buyers should look to Cyprus and Bulgaria this year, says property investment specialist Assetz. With help from its own International Property Investment Tracker, it has identified these countries as the best bets for overseas buyers.
Stuart Law, managing director of Assetz, says, ‘Southern Cyprus is set to become the overseas investment hotspot of 2006, with deposit levels falling to just 15 per cent in many areas for higher income clients and with Swiss Franc mortgages now available with rates of just 3.25 per cent, making borrowing even more affordable.
Bulgaria also looks set to continue its reign as a lucrative long-term investment, with ski resorts delivering year-round rentals and yields of up to 12 per cent – as much as double those in the coastal resorts, says Law. ‘The ski resorts thrive through the summer months, offering activities such as hiking, fishing and mountain biking. The low cost of living (a pint of beer for example, costs 50 pence), new cheap flight routes and world-class ski facilities mean Bulgaria is now providing healthy competition to the French and Austrian ski markets.’ Law points out that Bulgaria is still an emerging market, however, and ‘although investment prospects are strong, the resale market is not guaranteed and investors should exercise caution.’
France and Greece were also singled out as hot overseas investments for 2006.
Spain gets hotter
Buying property in Spain shows is getting more and more popular, according to Hunters Overseas Properties. The agent has seen a ten per cent hike in overseas enquiries over the last month from those looking to buy in Spain, with both relocators and investors eager to purchase in more sunny climes.
Hunters’ statistics have recently been backed up by a London Spanish Tourist office survey which shows that Britons continue to favour the Costa del Sol. Brits are expected to purchase 150,000 Spanish homes within the next three years. In Andalusia alone, British-owned properties amount to some 90,000, and the region saw a 43 per cent increase in British tourists between 2000 and 2004.
Lucy Malec, head of the overseas division at Hunters, says: ‘The rising interest over the last year has been due to the opening up of some areas due to low-cost flights. The recent arrival of Doncaster/Sheffield airport, coupled with improvements and new operators at Leeds, Bradford, Humberside and Teesside means that those in the north of England can now reach their Spanish holiday home in less time than it takes to reach London.’