The first figures to be released have revealed that Spain is overwhelmingly top of the league for UK home owners looking for a place in the sun this summer, with almost 50 per cent of people enquiring about overseas lending looking to take out a mortgage in Spain.
Based on inward enquiries to Blevins Franks Mortgage Services from people looking to take out a mortgage on an overseas property, the ‘Euro Property Watch’ will chart patterns of interest on a monthly basis, the first figures released this month relating to enquiries throughout August.
Spain, as a traditionally popular destination for UK investors wanting a second home, is maintaining its dominance in foreign property market according to the latest figures, despite the recent popularity of central and eastern European regions for investors. The August figures show that 49.9 per cent of enquiries were related to mortgages in Spain.
In comparison to this, only one in five people were considering France for their overseas property purchase in August. As another traditionally popular place to buy a second home, the country lagged behind with 22.9 per cent of enquiries.
Countries that joined the EU in May 2004 have been rising in the popularity stakes recently as investors look to take advantage of the stable, but still unspoiled property markets, with 10.4 per cent of prospective purchasers looking at Cyprus.
With over one in 10 enquirers looking to buy in places such as Croatia and Bulgaria, canny investors also have their eye on the next tranche of nations tipped to join the EU in 2007, where a higher calibre of property can be purchased for their money, than in more popular Spain or France.
Historical concerns over complex property laws in less developed countries now seem to be relaxing while inward investment into these regions leading up to the next EU expansion is helping to establish them as strong candidates for relocation and holiday home destinations. Croatia saw 8.3 per cent of the enquiries while Bulgaria saw 4.2 per cent.
Portugal also had a 4.2 per cent share of the enquiries in August as interest rates remain at a moderate level. Historically the country has been popular with purchasers, particularly those seeking to take advantage of the plethora of golf courses, such as those found in the Algarve region.
