According to figures released by the Association of International Property Professionals Britons spent a whopping £246million on overseas property last year, a 21% increase on the figure of 2006. This displays that Britons’ desire to own a holiday home in the sun or snow, or an investment in the money is not abating, especially when viewed against the fact the U.S. sub-prime crash began seriously affecting the industrialised world just around mid-2007.
The report noted that Spain was still the most popular in 2007, but that other locations, including emerging markets were quickly catching up, most likely because of the rising number of investors as oppose to primarily holiday home buyers.
I believe there is the potential that the number of Britons buying property abroad could rise again in 2008, as well as the figure spent. And I foresee that the gap between the popularity of established markets (Spain) and emerging markets will continue to close. I believe this because many overseas property markets, especially emerging markets have been largely unaffected by the credit crunch.
The BRIC emerging markets of Brazil, Russia, India and China continue to grow massively and they are spreading their wealth to the next generation of emerging markets, by sourcing goods from the cheapest sources, as well as companies from within BRIC often opening manufacturing plants in the new emerging markets because they can run their operations cheaper from within the countries.
What we also can’t forget is the widespread and growing British dissolution with the government, the deteriorating city estates and rising crime that is causing millions of Britons to move abroad every year, which will continue to keep the number of Britons buying property abroad at high levels.
All in all it is a fairly safe bet that the number of Britons buying property overseas will continue to rise throughout the duration of the credit crunch and beyond for as far into the future as I can see.
Great article. Thanks for the info.
I think another reason the British are becoming more and more interested in buying real estate abroad is that life is becoming more and more expensive and complex. When travel abroad, they notice that they can live much cheaper and more relaxed in other countries.
Another reason I believe is the expected future sharp price increase.