Overseas property buyers seek only low risk nations
Monday 6th of August 2012
Buyers of overseas homes are concentrating on countries least at risk from the ongoing financial crisis. That’s the view of a leading property expert who believes that people are increasingly heading to ‘core markets’ to avoid the uncertainty gripping the Eurozone.
Keep reading to
find out which countries are considered ‘safe havens’ for overseas property
investors.
Investors seeking low
risk European property markets
Matthew Hall, Associate Director of forecasting at property company DTZ, says that despite volatility in many markets there are plenty of opportunities for individuals looking to invest in overseas property.
At present, there remains an ongoing divergence between those eurozone countries that are the most and least exposed to the financial market problems. Nordic states in particular have witnessed downward pressure on prices where investors are demanding a ‘very low risk, safe and stable type of asset’.
In addition, property buyers remain cautious about buying in Spain following the country’s Eurozone bailout and resultant economic woes.
Mr Hall
commented: "Core Europe and the safe haven markets have seen further
downward pressure as investors flee the perceived risk in the most exposed European
economies.
"The required rate of return as a result has been dragged
down for property, so this has increased the attractiveness of core
markets."
The property expert added that there are now clear indications that many investors are turning to those European countries which offer lower risk to their capital.
Research carried out by Jones Lang LaSalle recently revealed property markets in the Uk, Germany and France are increasingly dominant in 2012. These three nations represented 70 per cent of European real estate investment volumes during the second quarter of 2012, up from 65 per cent in the same period last year.
However, according to the property specialists, cross-border investment remains extremely buoyant despite the ongoing financial crisis afflicting the eurozone.
