SPAIN VS. CENTRAL EUROPE
Now more than ever, overseas property buyers are faced with myriad choices of where to spend our well-earned savings, and where we should invest.
In recent years, we have been confronted with Spain, Florida, Dubai, Croatia, Bulgaria, Romania, Poland and Estonia (amongst many others) touted as being the ‘Next Big Thing’. As bewildered potential purchasers wade their way through all manner of stats and claims, it is important to remember that you are not always comparing like for like.
No-one goes into the process of buying a property overseas lightly. If there is just one thing that the Pocomed website can teach you, it is to do your research thoroughly and ask as many questions as you can before putting your money down. More importantly, when buying a property overseas, price is not absolutely everything.
One of the most common dilemmas faced by overseas property buyers is whether to invest in the traditionally popular market of Spain or any of the ’emerging markets’ of central and eastern Europe.
Spain remains the number one destination for Britons buying property overseas. A recent report states that 65% of Brits would choose Spain as their number one overseas property destination, and for over 38% it would be the only possible choice. By early 2005, Spanish town halls had registered 29% more British residents than the previous year, according to the research from IESE (University of Navarra Business School), commissioned by Barclays Bank
Buying property in Spain is an experience much closer to buying in the UK. The system is set up for overseas buyers and with years of experience in catering to UK buyers, modern developments are for the most part hassle-free and impeccably-planned. Prices are also closer to UK levels, though bargains are still available.
Spanish property agent Nick Snelling of Casas La Flor feels Spain should make the most of this fact: “Spain is no longer cheap and cannot compete price-wise with eastern Europe. But the reality (again missed by most) is that when you buy here you are not just buying into bricks and mortar. In reality, you are buying into a first world country where the living standards are identical to anywhere in northern Europe - proven political and economic security, a truly impressive health service and a UK level of general infrastructure. None of this comes cheap and it is my contention that Spain should be selling itself as an ’expensive’ place to live - but for very fine objective reasons.”
Since the emergence of the former Communist states of central and eastern Europe, and their accession to the European Union the property markets have opened up. We frequently hear of resorts and developments and the claim that they are ’like Spain 20 years ago’.
This statement can often be truer than people realise. Prices in Central Europe are significantly lower than in more established markets, and the investment opportunity seems superb. Prices certainly are attractive - £31,403 for an apartment at the Balkan Heights resort in Bulgaria's Pirin mountains, for example! I’m not sure you could get much in some areas of Spain for that price, even 20 years ago!
On the other hand, infrastructure, though improving, is often poor and communications can be patchy. There is little doubt that the prospects for medium-term investment in central and eastern Europe are outstanding. The amount of development currently taking place gives a wide choice of property types, as well as coastal, mountain and city locations.
The tourism market is also picking up rapidly, with more and more tour operators adding Black Sea resorts to their portfolios and beginning to entice holidaymakers with promotions.
If you are intending to use the property yourself for at least part of the time, or as a retirement home, make sure it is somewhere you are happy to spend a great portion of your time, and somewhere easy to reach should you want to return to the UK quickly.
Wherever you decide to buy, the most important thing is to identify your reasons for buying and what role you wish the property to fulfill. Once you have done this, it should be much easier to look at the destinations which can help you achieve your dream of owning a property abroad.
Now more than ever, overseas property buyers are faced with myriad choices of where to spend our well-earned savings, and where we should invest.
In recent years, we have been confronted with Spain, Florida, Dubai, Croatia, Bulgaria, Romania, Poland and Estonia (amongst many others) touted as being the ‘Next Big Thing’. As bewildered potential purchasers wade their way through all manner of stats and claims, it is important to remember that you are not always comparing like for like.
No-one goes into the process of buying a property overseas lightly. If there is just one thing that the Pocomed website can teach you, it is to do your research thoroughly and ask as many questions as you can before putting your money down. More importantly, when buying a property overseas, price is not absolutely everything.
One of the most common dilemmas faced by overseas property buyers is whether to invest in the traditionally popular market of Spain or any of the ’emerging markets’ of central and eastern Europe.
Spain remains the number one destination for Britons buying property overseas. A recent report states that 65% of Brits would choose Spain as their number one overseas property destination, and for over 38% it would be the only possible choice. By early 2005, Spanish town halls had registered 29% more British residents than the previous year, according to the research from IESE (University of Navarra Business School), commissioned by Barclays Bank
Buying property in Spain is an experience much closer to buying in the UK. The system is set up for overseas buyers and with years of experience in catering to UK buyers, modern developments are for the most part hassle-free and impeccably-planned. Prices are also closer to UK levels, though bargains are still available.
Spanish property agent Nick Snelling of Casas La Flor feels Spain should make the most of this fact: “Spain is no longer cheap and cannot compete price-wise with eastern Europe. But the reality (again missed by most) is that when you buy here you are not just buying into bricks and mortar. In reality, you are buying into a first world country where the living standards are identical to anywhere in northern Europe - proven political and economic security, a truly impressive health service and a UK level of general infrastructure. None of this comes cheap and it is my contention that Spain should be selling itself as an ’expensive’ place to live - but for very fine objective reasons.”
Since the emergence of the former Communist states of central and eastern Europe, and their accession to the European Union the property markets have opened up. We frequently hear of resorts and developments and the claim that they are ’like Spain 20 years ago’.
This statement can often be truer than people realise. Prices in Central Europe are significantly lower than in more established markets, and the investment opportunity seems superb. Prices certainly are attractive - £31,403 for an apartment at the Balkan Heights resort in Bulgaria's Pirin mountains, for example! I’m not sure you could get much in some areas of Spain for that price, even 20 years ago!
On the other hand, infrastructure, though improving, is often poor and communications can be patchy. There is little doubt that the prospects for medium-term investment in central and eastern Europe are outstanding. The amount of development currently taking place gives a wide choice of property types, as well as coastal, mountain and city locations.
The tourism market is also picking up rapidly, with more and more tour operators adding Black Sea resorts to their portfolios and beginning to entice holidaymakers with promotions.
If you are intending to use the property yourself for at least part of the time, or as a retirement home, make sure it is somewhere you are happy to spend a great portion of your time, and somewhere easy to reach should you want to return to the UK quickly.
Wherever you decide to buy, the most important thing is to identify your reasons for buying and what role you wish the property to fulfill. Once you have done this, it should be much easier to look at the destinations which can help you achieve your dream of owning a property abroad.
posted by tony at 5:05 PM
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