House Buying Blog

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Property Boom or Bust for our Favourite Hotspots?

May 2nd, 2007

Last week sent waves of panic through the worldwide property market as a large scale panic selling of Spanish real estate stocks prompted fears of a property crash based on the belief that the boom in Spanish property was over. Only time will tell as to whether the investors were wise to dump their stocks in Spanish property, however, are there also concerns for our other favourite investment hotspots?

Latvia

Latvia has been a star performer in terms of property over the past couple of years. Last year saw house prices increasing in the capital Riga by an astonishing 66% overall. Since joining the EU in 2004, the country has become a magnet for canny investors from major European nations wishing to get in on the property market at rock bottom. This fuelled a rush in external investment in the country. There is a worry that the market is currently overvalued and foreign investors will want to sell out quickly at a premium so that a new hotspot can be uncovered. This is an issue that the Latvian government seems very aware of and it has been announced that they will be introducing new legislation that will tax the profits of the sale of real estate within the first three years of ownership – this is an extension of the current rule which allows taxation within the first year.

UK

Confounding experts the UK property market continues to be a strong investment candidate even though experts are predicting the Bank of England will increase interest rates twice during this year. Nevertheless, the property market is still buoyed by the buy to let market and it is not expected that there will be a property crash, rather there will be a slight slow down as a consequence of the expected interest rises.

Spain

After five years of double digit growth in the property market, 2006 saw a more modest return of 9% and gains are expected to be lower this year. This can be partly attributed to increased competition from cheaper property investment destinations and the recent admission of several European nations into the EU, which caused a flood of investment. An old favourite of the British investor, Spain still has an enviable property investment market, but the time of large gains may well be over.

Top 15 European Countries for Property Investment

March 13th, 2007

A recent index compiled by Where On Earth has rated Cyprus as the best country in Europe in which to profit from property investment. The index takes into account a dozen factors to determine the investment viability of the locations, primarily these include the respective Gross Domestic Product, the level of Foreign Direct Investment, the level of exposure the country receives and the number of new property developments being built.

The full index including each of the factors determining the ranking can be found at here

Links to property hotspots in each country have been included where possible.

  1. Cyprus
  2. Bulgaria
  3. France
  4. Spain
  5. Turkey
  6. Romania
  7. UK
  8. Tenerife
  9. Montenegro
  10. Italy
  11. Germany
  12. Portugal
  13. Malta
  14. Estonia
  15. Poland

 

 
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