Overseas property investors head for quick gains

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by Gill Montia

HiFX, the currency firm, has published its Global Property Hot Spots report, which is based on an analysis of enquiries received by the firm.

The report confirms a rise in enquiries over the past three years for less traditional overseas property destinations, such as Bulgaria and China.

At the same time interest in destinations such as France and Spain has declined.

The analysis shows that while France and Spain continue to head the popular destinations for UK overseas property investors, destinations in emerging markets are lessening their lead.

Investors appear to be increasingly choosing properties that are likely to show quick gains.

For example, interest in Bulgaria in 2007 was double that of 2005, while enquiries relating to property in China increased from zero in 2005 to 3% in 2007, ahead of both Portugal and Cyprus.

The figures also show that interest in Spain has decreased by 2% since 2006 and is 10% lower than in 2005.

Interest in France remained constant between 2006 and 2007; however enquiries for 2007 were down 7% on 2005.

Mark Bodega, a director at HiFX, comments: “It’s easy to see why investors in particular are turning their backs on Spain and examining new markets at an earlier stage in their growth cycle. In August 2007, the national median price for property sold to overseas buyers in Spain was approximately €250,000. In Bulgaria the average price was closer to €60,000.”