Making money on an overseas property purchase depends on several key elements. Whether you want somewhere to live in permanently, for use as a holiday home or as an investment, buying in a rising market where property is currently affordable is crucial. This perfect property market storm will allow you to purchase your ideal home now, and make a handsome return in the future. Here are a few overseas destinations with long-term investment potential in 2018.
The Parisian property market has been boosted in 2017 by two big victories. Having fought off stiff competition from LA to host the summer Olympics in 2024, Paris and its inhabitants will benefit from largescale investment into local infrastructure. The election of Emmanuel Macron as President appears to have inspired a property market revival. Prices in the capital have risen by 7.8% in the year to September 2017, with notaries predicting an acceleration of this trend in 2018 to around 10%. Mr. Macron has also made clear his commitment to reduce taxes for property owners, which along with dreams of living in the world’s most romantic city has caught the attention of overseas buyers.
Exotic appeal, favourable tax conditions, low cost of living and close proximity to Europe all entice overseas property buyers to Marrackech. Perhaps the biggest draw as we enter 2018 is Morocco’s property prices, which having plummeted after the global financial crisis – falling as much as 50% from their peak – rose by 4.7% 2017. While prices remain at bargain levels you could bag yourself a six-bed riad built around a tiled courtyard and pool for £650,000 – that’s approximately £100,000 cheaper than the price of a one-bed flat in Chelsea. If you’re planning on entering the rental market the city’s artisan heritage, strong sense of faith and culture and show stopping medina ensure there is a constant stream of tourists looking for affordable accommodation.
Bulgaria offers something for property buyers of all tastes, from Black Sea beach resorts and world-class cities to affordable ski resorts scattered throughout its mountainous landscape. In terms of its property market things couldn’t get much better wherever you choose to buy in 2018. Recent figures from Eurostat reveal property prices in Bulgaria increased by 9% in the year to September 2017, compared to the same point the previous year. Sofia remains the most popular destination for overseas buyers – property prices increased by 10.6% in the capital during the year to June 2017. Black Sea resorts like Varna, which experienced a 13.9% price rise during the same period, are also in-demand as an affordable alternative to more expensive Mediterranean locations. Looking ahead, the value of property is expected to continue its upward trajectory thanks to low interest rates and economic growth.
Spain ticks all the boxes for overseas property buyers: fantastic year-round climate, endless supply of Blue Flag beaches, convenient low-cost flights to Europe and established expat communities. Overseas property buyers who continue to flock their each year, determined to make their holiday last forever, are well-placed to take advantage of a housing market recovery that’s in full swing. According to Eurostat Spanish property prices rose by 6.7% in the third quarter of 2017, compared to the same point in 2016. The sharpest rises were reported in the Canary Islands (17.9%), the Balerarics (10.7%) and Catalonia (10.2%). Prices are forecast to rise at a similar rate over the coming months, provided Spain avoids any sudden economic surprises or changes to the mortgage market.
At present our final entry doesn’t completely fit our template for a successful overseas property purchase. In fact Eurostat figures reveal Italy’s economic woes have triggered a further drop in property prices in the third quarter of 2017. This follows hot on the heels of news that Italy was the only country in the EU where house prices dropped in the second quarter of 2017. But it’s not all doom and gloom, with sales volumes rising and price drops levelling out, as the country’s economy emerges from a period of financial and political uncertainty. These conditions mean affordability is not an issue, while renewed optimism about the future of the property market offers hope about the long-term potential of your investment.
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