Posted On Wednesday, 26th October 2011
Eurozone in trouble : Invest in Property
October 26, 2011
The world is watching the crisis in Europe , where EU leaders are struggling with the eurozone debt crisis.
Disagreements between country leaders have fuelled fears that the crisis will only continue.
But careful buyers can still make a sound investment in Europe and beyond .
French property, continues to attract investors, particularly in the high-end market, where Sotheby's have seen a jump of 38 per cent in luxury homes sold at auction, reports the Guardian.
For UK buyers, taxes now apply to UK pension lump sums, but the country's cautious banks have helped France's economy to stay stable amid wider uncertainty.
Germany's careful economy has made it an established market for house hunters with its high yields and low prices appealing to an increasing number of foreign buyers. While central locations, such as Berlin, are seeing house prices increase, real estate across the country has grown in popularity during the eurozone crisis.
Italy remains one of the main points of discussion in the EU talks. One of the key countries in the eurozone, other leaders are demanding that the country outline firm plans to reduce its large national deficit. Italy's climate is still attracting new residents, although an awareness of seasonality is advised by experts. The property market is slow, so lifestyle buyers can pick up houses "at bargain prices if they find someone who really needs to sell or move".
Spain remains the most popular destination , and its low costs and sunny coasts have built up a significant expat community. 800,000 Brits are currently living in Spain, according to theForeign and Commonwealth Office, and although exchange rates are less favourable than a few years ago and a wealth tax has just been introduced, property prices in more popular areas have reduced by up to 50 per cent.
These bargain homes have seen foreigners invest €1.3 billion in Spanish real estate in the second quarter of this year, according to the Bank of Spain - an increase of 37 per cent compared to 2010. Buyers afraid of Greece or Italy can still rely on Spain for a second home.
Portugal's economy has been badly hit by EU debt, but real estate activity was less negative in September than in August, say the latest figures. It helps that the market has not been crowded by an oversupply of property. Instead, "it is the demand side of the equation that is weighing down on prices in Portugal", according to the Royal Institution of Chartered Surveyors, a finding supported by the differences between regional markets. The Algarve, for example, is faring significantly better than Lisbon and Porto. Overall confidence In Portuguese real estate is low, but prices are too, kept down by the number of repossessed property banks are now putting up for sale.