Overseas investors remain confident

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by Gill Montia

The National Association of Estate Agents International and Federation of Overseas Property Developers, Agents and Consultants are confident that demand by UK investors for overseas properties will remain strong during 2008.

Both organisations report that consumer enthusiasm has not been undermined by the turmoil in the money markets and in addition, research by Foreign Currency Direct (FCD), the exchange specialists, shows an 8.2% rise in the number of overseas property transactions in the last quarter of 2007, as compared with the same period of 2006.

Demand for established destinations should remain strong, with France, Portugal, Italy and Cyprus all expected to perform particularly well in the coming year.

Spanish property is currently taking longer to sell than has been the case, with prices dropping back in some regions, but according to Robin Haynes of FCD, “British buyers are still in love with the idea of a place on the Costas”.

Mr Haynes also points out that: “interest is escalating again in the Florida market.”

House prices are currently falling in the US and the dollar is at its lowest level against the pound since the 1980s.

Baydonhill, the financial services company, believes that the diversity of UK buyers adds to the strength of the overseas property market.

According to the company’s spokeswoman, Vanessa Bird, “The huge variety present here, in terms of age, financial circumstances and motivation for buying, is the driver behind the constant supply of purchasers.”

Ms Bird also expects more exotic destinations, such as Brazil, Venezuela and Thailand to attract new UK investors in 2008.

However, she states that: “The challenge for these markets is to go beyond the two-to-three year popularity span which so many are experiencing.”