Investors bullish on European property
January 28 2015 - 12:50PM
Property
New ski infrastructure opens this weekend in
Châtel
Investors are bullish on European property at the
start of 2015, as shifting exchange rates boost affordability in
the face of wider uncertainty.The euro has been buffeted by a
number of dramatic events this January, from the European Central
Bank’s announcement of Quantitative Easing and Switzerland’s
decision to unpeg its Franc agains the single currency to Syriza’s
win in Greece’s general election last weekend. While uncertainty
has spread repeatedly across the continent, though, investors are
bullish on European property. The left-wing party’s insistence upon
remaining in the euro helped to stabilise the markets in the day
following Syriza’s victory, but not before the currency fell to an
11-year low against the dollar. Experts, though, are welcoming the
volatility for overseas investors, advising caution, but also
upbeat about the savings that could be made.Increasing availability
of properties, a strong Pound versus the euro, and rising UK house
prices, means that UK buyers are in "the strongest position for
some years", says FrenchEntrée.Managing Director Guy Hibbert says:
"Many of our UK and overseas clients have managed to secure some
price reductions on French property in 2014. Much of this has been
down to a combination of France’s well publicised economic issues,
global financial trends, and sustained increases in UK house
prices.While buyers have the upper hand, though advises that "there
is a two-tier property market" in France:"Foreign buyers looking to
buy in enduringly popular regions such as the Dordogne and Cote
d’Azur will still be required to pay a premium over native market
rates for picturesque rural period properties."Chinese investors
are also expected to step up their investment in European property
this year. China has become an increasingly major force in global
real estate. In the US, NAR data shows that Chinese buyers spent
US$22 billion on American property – a figure that shot up from
US$12.8 billion in 2013. While the US remains the American dream,
though, Chinese portal Juwai.com says the lure of obtaining
European citizenship has grown increasingly popular.One in five
foreign property purchases in Portugal within the first nine months
of 2014 were from Chinese, thanks to the country’s hugely
successful Golden Visa scheme. With a lower investment bar and the
offer of accelerated citizenship, Bulgaria is also an attractive
option for Chinese investors who are keen to settle in the UK but
balk at the UK visa price hike. Italy’s educational opportunities
means the country is "undoubtedly an attractive option", although
complex Italian policy "may hinder Chinese immigrants", notes
Juwai."One of Europe’s top second-home destinations, Spain has seen
its property prices slide 30 per cent to 50 per cent since 2013,
leaving a slew of prime properties to snatch up at a steal."2015 is
also the 40th anniversary for diplomatic relations between China
and the EU, and a new round of economic stimulus plans set to take
effect in 2015 will mean potential opportunities and economic
recovery for Europe."Europe "should be the star of 2015", the
portal concludes.Other nationalities are sharing that bullish
sentiment, with OverseasGuidesCompany.com recording an 11 per cent
increase in enquiries for Eurozone property buying guides last year
compared to 2013. Portugal and Spain both saw demand surge on
TheMoveChannel.com in the second half of 2014.The added turbulence
at the start of 2015, meanwhile, is boosting interest from less
cautious investors.Athena Advisors reports that January has been a
record month/"With the Euro falling 14% and 22% against GBP and USD
respectively over the last 10 months alone, this January has been
our busiest on record for ski property, in terms of both sales and
enquiries," says Lloyd Hughes, Head of Communications. "The Swiss
Franc’s movement (after the Swiss Central Bank removed the rate
cap) pushed our enquiries up by 20 per cent in just a few days. The
CHF moved 15 per cent higher on the Euro and Pound overnight so
it’s no wonder we’ve seen more buyers coming through that we’re
previously targeting Switzerland.""France is 14 per cent cheaper
than 10 months ago," he adds, "and Switzerland is 15 per cent more
expensive than 3 weeks ago."
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