Sun sets on British investors abroad

Wednesday, 07, May 2008 08:19

British investors do not rule the world's property investment waves, despite their apparent delusions, according to Unique Living.

Although the British sector is important, it is not essential to overseas markets, according to the investment specialist, and its influence could be in decline following the credit crunch.

"The current credit crunch is giving the UK buying public expectations of dramatic price reductions, but this is a misconception with the overseas high end market," said Serge Cowan, managing director of Unique Living.

"The world is a big place, the UK market although important is not essential, so buyers holding back or expecting major price falls in overseas property hot spots are going to be disappointed."

Scandinavian, Dutch and Russians buyers are equally important, argues the firm, and are principally interesting in purchasing in southern Europe.

Many are buying on the French Riviera, in the south of Cyprus and the Costa del Sol.

Unique Living argues Brits hold two key misconceptions when buying abroad:

• Firstly, Brits expect dramatic reductions, to the extent they are usually untenable.
• Brits assume they are the 'saviours' to property owners, when clearly they are not.

"Buyers should look to regions where growth is still strong, so that even though they may lose on the conversion they gain on the capital growth," explained Mr Cowan.

In certain hot spots, where demand outstrips supply, prices continue to rise steadily so your investment could show more capital growth pa than in the UK. Cyprus is reporting around eight per cent per annum.

Chris O'Toole