Britain And Ireland Real Estate Blog

The European property market is facing increased competition from some emerging property hotspots in other parts of the world.

The International Herald Tribune reports that countries in Africa and South America are attracting higher levels of interest from foreign property investors.

It says their ability to offer the sought after combination of sun, sea and sand as well as easy access to major cities is helping them to rival their European counterparts.

Morocco in particular is proving a popular destination and is fast catching up to the likes of Spain and Portugal as a top choice for foreign property investment.

Comparatively low prices are a big attraction to buyers and an increase in the number of tourists visiting the country is fuelling demand for rented accommodation, which means opportunities for buy to let investors are plentiful.

Tourism is the country is expected to be given a further boost thanks to the Moroccan government’s Vision 2010 tourism strategy which aims to increase visitor levels five fold compared with 2002 levels.

Opportunities for those looking to invest in the Spanish property market are rife in Tenerife where strong tourist numbers and internal population growth are fuelling demand for rental accommodation.

This is the view of Tenerife Property Shop, which told the Tenerife News that it was seeing a large increase in the number of buy to let investors purchasing property on the Canary island.

As well as strong tenant demand attractive tax benefits for long-term investment in the local rental market are encouraging foreign buyers to add Tenerife properties to their portfolios.

UK investors are particularly attracted by the healthy returns on offer in Tenerife and are even calling the island a buy to let paradise according to Tenerife Property Shop.

“The influx of these new investors into the Tenerife market has been building over several months, to the point where we can now identify it as an accelerating trend,” director Mary Spencer told Tenerife News.

The island attracts huge numbers of tourists every year thanks to its balmy climate and unique volcanic beaches and its many resorts offer something to suit all tastes, meaning investors will find it easy to cater to holidaymakers’ needs.

Property owners in Florida are being warned that they must apply for portability of their Save Our Homes tax benefits before March 3rd or risk losing out.

Homeowners who sold a property in 2007 and bought a new one before January 1st 2008 are able to avoid large tax penalties under the Save Our Homes law, which prevents tax assessments on homestead properties from rising too quickly.

However in order to take advantage of the tax savings on offer they must apply to transfer them to their new home before the deadline for applications on Monday.

Those who have already applied for homestead exemption on their new Florida property need to fill in a separate form before this date if they are to take their benefits with them.

Meanwhile property investment in the US state remains buoyant, with sales of existing single-family homes totalling 6,737 and sales of condominiums reaching 2,252 last month, according to the Florida Association of Realtors.

The latest Open Skies agreement between the EU and the US promises to benefit travelers and business executives alike. Avid investors who are taking up investment property opportunities in the United States may see a higher demand for holiday lets as competition between airlines is about to get ferocious.

Following decades of strict regulation, free competition on transatlantic flights will finally come into effect on March 30th. Until now, only four airlines were allowed to reap the profits of the lucrative UK – US routes, which see in excess of 50,000 passengers a day. The new Open Skies agreement which, when introduced in Europe, saw the likes of Ryanair and Easyjet break the market, will allow long-haul budget carriers to compete with giants such as BA or Virgin Atlantic.

It costs an airline a little more than £200 to fly a passenger from the UK to the US; therefore, unless fuel prices fall, it will be highly unlikely that we will see off-peak fares reduce much further. However, as major airlines such as Air France and Continental launch their new routes, we should see a great reduction in the price of tickets during peak time, that is the summer and Christmas seasons.

In the UK, as larger airlines move to Heathrow to launch budget flights to Fort Lauderdale and San Diego, budget carriers will be able to use spare take-off slots in cheaper regional airports and offer largely discounted airfares to users.

Zoom airlines is advertising return flights from London Gatwick to Fort Lauderdale in Florida for as little as £299 and to New York, in the middle of July, for just £339 including tax.

According to the latest figures by the American National Association of Realtors, the majority of foreign purchases in Florida were made by the British. The main reason for most of these property purchases was as an investment with a view to renting the property or
providing a holiday home to both family and friends. America boasts third place in the world for tourist arrivals and first place for tourist expenditures, according to the UN barometer. Likewise, the USA’s 9% increase in arrivals in the first three months of 2007 speaks for itself.

As competition begins for the cheapest airfare to America, investment property in the USA, particularly in coastal areas, could begin generating some outstanding returns to investors. 

Italy’s beautiful countryside and stylish Mediterranean beach resorts make it an attractive place for property investment, according to NuWire Investor.

The real estate news provider claims the country offers a great deal for travellers around the globe, which is good news for investors looking to take advantage of tourist demand.

Indeed, there are many opportunities in the Italian rental market, particularly in coastal areas and rural locations in southern Italy which are frequented by overseas visitors.

But the country’s cities are also a popular choice for investors, with apartments in Rome, Milan, Venice and Florence all offering lucrative returns thanks to demand from those jetting off on short city breaks.

“Italy’s exquisite cultural patrimony, evocative countryside and ‘made in Italy’ craftsmanship all combine to preserve the value of Italian real property,” said Donald J Carroll, a member of Pirola Pennuto Zei & Associates in Rome, told NuWire Investor.

According to rightmoveabroad.com southern Italy is emerging as a competitor to the traditional destinations of France and Spain when it comes to holiday home investment, the Mirror reports.

Increasing numbers of Britons are eyeing up property investment opportunities abroad as they look to indulge in some cheaper, sunnier, stress-free living.

Research conducted by Foreign Currency Direct shows that ten million UK people are looking to buy a property in another country, such as Spain, in the next year and four million of these would like to live in their overseas home permanently.

Some 14 per cent of those looking to purchase abroad were first-time buyers, suggesting that high prices in the UK are encouraging them to look elsewhere.

In addition, 33 per cent of respondents said crime levels at home would prompt them to move abroad for good and 31 per cent said they would do so to escape the gloomy British weather.

“Buying property overseas is still an excellent investment and a great opportunity for a better quality of life,” said Peter Ellis, chief executive of Foreign Currency Direct.

Meanwhile currency company Caxton FX says it has seen unprecedented demand from British clients looking to begin a new life down under and buy property in Australia and New Zealand.