This is according to Lloyds TSB International research which suggests that many investors who delayed buying property overseas during the recession may now enter the market again due to a significant fall in prices and a renewed confidence in property markets.
Research reveals that prices in many parts of Spain, and other key overseas property locations have plunged by up to 40% in the last three years and that British investors have been adopting a ‘wait and see’ approach with mortgage sales remaining sluggish in some parts.
But new data from the National Federation of Estate Agents in France shows house prices increased in France in 2010 for the first time since 2007 and recent research by Germany real estate group, IVG, suggests house prices in Spain may recover sooner than expected and faster than the rest of the economy.
“Key markets that were over-heated in 2007, like parts of Spain and the US, are now buyer’s markets with many heavily discounted deals available,” said Barry Luhmann, head of lending at Lloyds TSB International.
“Many people preferred to wait and see how the markets and their finances would be affected by the recession, but after this recent lull in activity we expect interest in overseas property to return, possibly quite strongly, as the economy improves. Indeed, there are already signs that interest is picking up.
“All of our market research points to the fact that many people in Britain still aspire to buying an overseas property, but a lack of confidence in personal finances and property market stability is holding them back for the time being.”
Average prices in Spain have dropped by 23 per cent since their peak in 2007, while in key tourist destinations such as Ibiza and Costa Blanca, prices have fallen as much as 40%, which has spurred the Spanish government to appeal to British buyers to return. Similarly in Italy and New Zealand, prices have dropped by as much as 25% since 2007.
