Confidence in overseas property markets remains resilient

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by Gill Montia

Conti has reported strong activity from British investors in overseas property markets.

The foreign mortgage specialist recorded a 20% increase in mortgage quotes during September, with the value of applications submitted to overseas lenders at a 12 month high.

The firm suggest that property prices falls across Europe and historically low interest rates are livening up the market.

Operations director, Clare Nessling, says: “The ‘staycation’ trend may have reduced the number of Britons holidaying abroad this summer, but many of those who did venture overseas have returned home with plans to buy their very own place in the sun.”

She adds: “Easy access to the more traditional locations like France and Spain, together with good rental opportunities, are also contributing factors.”

According to Conti, 31% of the mortgage enquiries received so far this year pertain to property in France; followed by 22% for Spain and 13% for Turkey.

The research therefore indicates that buyers are sticking to the locations they know and trust in favour of emerging markets, such as Bulgaria and Dubai.

In addition, Conti believes confidence amongst prospective buyers is growing, with savvy investors more willing to explore overseas opportunities as they search for better potential returns than in the UK.

In related overseas property news, Foreign Currency Direct has recently pointed out that the fall in the value of sterling against the euro is prompting some Britons to sell second homes in the eurozone and make a profit.

The currency exchange specialist gives the example of France, where property prices increased by 210% between 1995 and 2007, after which they began a decline.

According to the firm, the average cost of a home in France stood at £140,000 in 2008.

With exchange rates having fallen from £1.26 to €1 in September 2008, to around £1.10 today, Britons selling a French property at below its 2008 purchase price still stand to make a gain of 16% when converting euros back to sterling.