INTERNATIONAL
moment, he says, while Switzerland is also doing well. “Their property market has always been stable. Buyers invest in Switzerland as they see it as a real ‘port in a storm’. The lifestyle and tax benefits are also very much sought after. He says the prime markets,
Mallorca, the south of France, Tuscany, are “international in their very nature”; for instance, Germans are now the most active in Mallorca – where UK buyers used to predominate.
OUTSIDE THE EUROZONE Europe outside the eurozone offers some interesting potential, though buyers have to be very selective. Ray Withers suggests Krakow, in Poland, as an investment in a country with good growth, trade links both west (to Germany) and east (to Russia), and which hasn’t suffered a banking crisis. But it’s markets outside the EU
which are attracting most attention, for instance Turkey, where Ray Withers says Istanbul in particular has strong fundamentals. The economy is booming, financial markets are stable, and Istanbul has a shortage of 250,000 homes a year due to new arrivals in the city and high growth rates. “The relatively low prices, controlled construction activity and high yields make this a buy to let investor’s dream,” he says. Giles Beswick of Select Property
concurs, “Turkey is doing well at the moment,” he says. “It took all its pain in the 1990s; now it has a fast growing economy and a lot of tourism going on, and the properties still represent value for money compared to traditional Mediterranean destinations like the Algarve.” Prices are rising at 7 per cent annually, and for those wanting a holiday property, Turkey also benefits from a lower cost of living than the eurozone. While the coast is a bigger market
for the lifestyle purchaser, Giles says, his firm is also working with two or three smaller scale projects in Istanbul, which he believes is a good market for buy-to-let investors. Meanwhile some of the past few
years’ most bombed-out markets offer recovery potential. Giles Beswick says, perhaps surprisingly,
PROPERTYdrum MARCH 2012 43 Above:
Poland has some possibilities!
Below:
Dubai is active with resales.
that Dubai is doing extremely well, “It is probably our most active market at the moment,” with resale property rather than new developments accounting for its sales. Having been through a rapid expansion, it has now consolidated; now, he says, the quality
Dubai is probably our most active market at the moment; the quality neighbourhoods
have become established.’ GILES BESWICK SELECT PROPERTY
neighbourhoods have become established, and while capital growth isn’t expected to be impressive, excellent rental yields are achievable. Buyers can get a one bedroom flat in an established neighbourhood for around 750,000 dirhams (£130,000), and get yields of 12 to 13 per cent. Egypt might also be worth a look
after the disruption of the Arab Spring. Ray Withers says it is a “good cheap location for lifestyle purchasers”, though since it is heavily reliant on tourism, might not see much growth in the next couple of years. But Giles Beswick believes there is long-term potential; “with reforms on the way, you need to see through the short term political turmoil,” he says. On a ten to fifteen year timescale he thinks it has terrific potential, “with some still very undervalued properties.” More mainstream is a punt on
the US housing market. Ray Withers says,” The US, and specifically Florida is still one of our solid favourites for a pure value play, it’s the 4th largest economy in the
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