Country: Bulgaria; Croatia; Cyprus; Estonia; Finland; France; Iceland; Norway; Portugal; Portugal; Russia; Spain; Sweden; Switzerland; Turkey
3 July 2009
Overseas property markets across the globe have worsened, and no country has escaped unharmed from the global financial turmoil - although the scale of the impact varies from country to country. While there remains much uncertainty in the global economy, price falls recorded around the world do represent a once-in-a-generation opportunity to cash-in on property in Spain, French property, Portugal property, USA property, among others.
Portugal is now the most popular place to buy a home overseas, based on country page views, and property views, on Homes Overseas. Billions of pounds are being invested into the ever-popular Algarve property sector, along with Lisbon property, Silver Coast property, Northern Portugal, as well as property in Madeira and Porto Santo. The Portugal property options are endless.
Demand for property in Spain has dipped in recent months, following a string of woes; property scandals, corruption, a stringent oversupply of homes, dodgy legislation, such as Valencia’s ‘land grab’ law. However, the country’s distressed market means there are now some great opportunities available, with significant price reductions being made.
Falling prices and interest rates in the French property market is attracting greater demand for homes. The latest French estate agents association FNAIM report shows that average house prices have fallen 11.2 per cent year-on-year, whilst the average price of apartments has dropped by 8.4 per cent, causing prices to fall back to levels last recorded at the end of 2004. FNAIM project that average prices for property in France will depreciate by a further 5% to 10% this year, before they start to recover again.
The Bulgaria property market boom is now well and truly over. Sales levels are down up to 40% year-on-year, as a consequence of greater interest rates, a lack of liquidity and more stringent lending conditions, while the average price of a new-build home has fallen by around 30% on an annual basis. Property in Sofia City remains the best investment bet. But in general, we expect further price falls this year.
Property in Iceland has experienced a sharp property downturn. The market has virtually ground to a halt, amid a national economic collapse.
Property prices are falling across Scandinavia. Values in Norway, the world’s third largest exporter of oil, and Denmark, are down by seven to eight per cent year-on-year. Finland and Sweden are the region’s best performing markets, although activity and prices have dipped, albeit at a slower pace, so far.
The BuySell Home Price Index shows that overall property price in the Cyprus property market slowed from 19.2% in 2007 to just 2.8% in 2008. Further Cyprus property price falls nationwide are widely anticipated this year. However, economically the International Monetary Fund has named Cyprus as one of the few nations that should enjoy growth this year. The Cypriot economy is projected to grow by 0.3% this year and 2.1% next year, and this should benefit the housing market.
Property in Switzerland is holding up well, particularly at the luxury end of the market, buoyed by the country’s decision to open its doors to ‘residence de tourisme’ style investments, making it easier for foreigners to purchase Swiss properties. Prices have generally edged upwards.
The Russian property sector has slowed, along with the economy. However, property in St Petersburg remains relatively attractive, particularly the new-build division.
The Croatia property market remains most active in Istria County – the so-called ‘new Tuscany’ – while the southern Dubrovnik region remains the most desirable place to own property. Property in Brac and property in Hvar are also popular options for people looking to buy on tranquil Mediterranean islands. The country has hopes of joining the EU and NATO over the next few years and is regaining a reputation as a desirable holiday destination.
Following several years of robust capital growth, property prices across much of the Baltic States are undergoing a severe price correction that could be long lasting. Over the past year, the price of property in Estonia plummeted by 25% to 30% and Lithuania, while the price falls in Latvia, have been even greater.
A recent report from the Post Office named Turkey as one of the world’s most affordable places for Brits’ to visit, and buy Turkey property, due to sterling’s strength against the Turkish lira. The country’s popularity as a holiday home destination continues to swell. The best prospects for capital growth are in property in Istanbul, while demand is high for property in Antalya City, as well as Bodrum property, among others.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
See Also: Portugal, Algarve, Lisbon, Silver Coast, Madeira, Spain, France, Bulgaria, Sofia, Iceland, Cyprus, Switzerland, Russia, Croatia, Estonia, Turkey, Istanbul, Antalya, Bodrum
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Type: Apartments
Bedrooms: 1
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