Stable Spain beats Emerging Markets
By Kevin Barnett, 14 Aug 2007
While up-and-coming destinations such as those in eastern Europe and, even further afield, Brazil and South Africa have enjoyed increasing interest from potential investors, traditional favourites remain highly appealing.
Recent research by currency specialist HiFX found that Spain remains the top investment destination for Britons buying property abroad. Savvy buyers should head inland, the firm advised, suggesting less traditional destinations - away from coastal developments - could yield better investment returns.
Mark Bodega at the firm advised investors to take a "more realistic" approach to the prospects offered by the Spanish property market. He said they should look for existing value in properties rather than attempt to create it artificially.
"Cut through the current hype and think carefully about the property you are buying in order to make the most of the current market conditions," he advised. "Only certain areas are suffering a slump due to over supply, whilst others still have much to offer."
Hetal Shah, director of Investors Provident, agrees that the Spanish property investment market continues to appeal to buyers. Despite recent reports about a crash in the property sector of Spain, Mr Shah believes there is enough momentum in the market to keep it going.
"I think with the established markets, it's never going to really die down -even with the recent scare in the Spanish property market."
The fact that a property market is seen as "tried and tested" should not deter investors from Spain, said Mr Shah. Security and guaranteed capital growth will continue to attract buyers, he said, although the process will be slower than in emerging markets that are enjoying high returns in a short space of time. However, he added: "I don't think you can go wrong."
This view is shared by Gerry Bell of GE Money Home Lending. He said: "Although new emerging eastern European markets are looked upon as good short-term investment opportunities, we can see that most Brits are looking towards their dream holiday home as a location they can retire to in future years and for ease of living whilst abroad."