British Buyer Interest in Italian Real Estate Soaring

Italian property portal Gate-Away has reported a massive 87.5% increase in search enquiries from British investors in the first quarter of 2015, compared with the same period last year.

Sterling strength against the euro has led to a significant upward shift in sentiment from British buyers since the beginning of the year. Interest was further buoyed when changes to UK pension regulations took effect in April, resulting in more than 200,000 new buyers entering real estate markets both at home and overseas.

Gate-Away also revealed that Brits are looking at more expensive property in Italy’s prime regions with budgets of an average €324,000 compared to €190,000 in the first three months of 2014. This is partially due to increased purchasing power resulting from sterling strength in euro denominated property markets.

Simone Rossi, commercial director of Gate-Away said: “The average value of Italian properties sought by the British has grown tremendously in this first quarter and even beyond the depreciation of the euro against the pound. More and more Brits than ever are being driven by the favourable economic climate and are finding that the Italian real estate market is far from inaccessible and beginning to consider the idea of buying a house in Italy very seriously“.

Topping the list of most favourable buying locations was Puglia, knocking Tuscany off the top spot. 80% of searches by British visitors to the portal have shown interest in houses and 20% in apartments, with around 55.7% looking for habitable properties not requiring renovation.

Gate-Away shows that the UK generates the highest number of enquiries for property in Italy, followed by the Americans at 14.2% and French (9.3%). Interest from American buyers in Italian property markets is also expected to increase considerably in 2015 on the back of a rock solid dollar.

For more information visit:

https://www.propertyshowrooms.com/italy/property/news/british-buyer-interest-italian-real-estate-soaring_313414.html

Investors rediscover appetite for Italian real estate stocks

MILAN, March 11 (Reuters) – Italian real estate stocks such as Prelios and Risanamento rallied on Wednesday to test new highs as investors warm to improving business prospects in a market battered by years of recession.

Chronically depressed property prices in Italy have started to attract growing attention at a time when the weak euro and very low interest rates are luring investors to Europe’s shores.

“Italy is one of the countries in Europe that has not benefited from the price rises we’ve seen in Germany and Spain,” said Paolo Bellacosa, head of capital markets at CBRE real estate consultancy in Italy.

“There’s a lot of interest from foreign buyers, mainly U.S. private equity funds.”

Shares in Prelios rose 10 percent by 1530 GMT, while the Risanamento share price was up more than 9 percent, bringing gains since the start of the year to above 90 percent.

Elsewhere in the sector, Beni Stabili and IGD have risen 27 percent and 33 percent respectively so far this year.

Europe’s commercial property market sizzled last year as demand for real estate in Paris, Britain and Germany, plus strong private equity interest in Ireland and Spain, sent deals to their highest level since the financial crisis.

But a protracted economic recession, along with red tape and a byzantine legal system, meant that little of the money flooding European markets came Italy’s way.

Now pledges by Prime Minister Matteo Renzi to modernise the country and kick-start growth are winning over converts as the euro zone’s third-largest economy shows signs of emerging from a triple-dip recession that began in 2008.

Luca Dondi, head of real estate at independent think-tank Nomisma, said that sentiment in the property market had been lifted by recent positive house sales data, a rise in mortgages from big banks and the recent spate of big deals.

In February Qatar’s sovereign wealth fund struck a deal that made it the sole owner of a prime real estate area in Milan worth more than 2 billion euros ($2.12 billion).

“The past seven years have been very difficult for the market and many of the stocks are valued cheaply compared with their assets. They’re now returning to more normal levels,” Dondi said. ($1 = 0.9456 euros)

For more information visit:

http://mobile.reuters.com/article/idUSL5N0WD3UH20150311?irpc=932

L’immobiliare di fascia alta conquista gli investitori statunitensi grazie all’euro debole

A novembre, Lisa Suydam ha avviato le trattative per un pied-a-terre a Parigi, ma l’accordo non è ancora stato chiuso perché il venditore ha bisogno di più tempo. Suydam non potrebbe essere più felice. “Ogni punto che l’euro perde, io risparmio. Non avere chiuso l’affare mi ha fatto risparmiare molto”, ha raccontato la sessantaduenne assistente di volo in pensione. Lo scorso autunno, quando si è accordata per il pagamento di 690 mila euro per il monolocale di 34 metri quadrati nel settimo arrondissement, il costo in dollari era intorno a 870 mila. Oggi è circa 760 mila dollari, anche se Suydam ha già versato una caparra del 10% e ha cambiato alcuni euro a un tasso leggermente più elevato, progetta di concludere alla fine del mese.

Per gli americani che hanno sempre sognato una fuga in Europa, il crollo dell’euro è la svolta. Dal minimo dello scorso anno ad oggi, il dollaro si è rafforzato del 26% sull’euro. L’ultima volta che è successo era il 2003. “L’opinione generale è che per la fine dell’anno il cambio euro-dollaro sarà a 1,10, ma molti credono che il dollaro potrebbe essere anche più forte”, ha riferito Daragh Maher, Fx strategist presso Hsbc a Londra. E si consideri che al momento della pubblicazione, un euro valeva 1,10 dollari.

Gli agenti immobiliari a Parigi, in Toscana e a Barcellona hanno riferito di essere stati sommersi di chiamate ed email di cittadini statunitensi da gennaio. Sotheby’s International Realty in Francia e a Monaco, attualmente, ha tra il 30% e il 35% di clienti americani in più rispetto al 2012 e al 2013, ha fatto sapere il ceo Alexander Kraft, aggiungendo che tra il crollo dei prezzi e lo scivolone dell’euro, a Parigi gli americani ora riescono a pagare il 40% in meno rispetto al 2012. Ecco una panoramica sulla ripercussione del tasso di cambio in tre popolari location da seconda residenza scelte dagli americani.

BARCELLONA. Lane Auten ha il fiuto per gli affari. Tra il 2010 e il 2012 ha gestito un portafoglio di beni immobiliari nella San Francisco Bay Area. Tre anni fa, ritenendo che con le ville unifamiliari statunitensi “il rendimento non fosse più interessante”, ha traslocato a Barcellona con la moglie spagnola Nieves Prieto, una regista di documentari. Ha creato un nuovo gruppo che compra, ristruttura e rivende appartamenti di lusso nella città. Sette mesi fa, insieme ad altri tre investitori, ha trovato un edificio storico nel quartiere gotico. La sua quota personale era di 1,2 milioni di euro, circa 1,62 milioni di dollari al tasso di cambio della scorsa estate ma quando ha concluso, a febbraio, ha pagato circa 1,35 milioni di dollari. “Era già un buon affare all’inizio quando l’abbiamo trovato, e sta andando ancora meglio da allora”, ha commentato Auten. Inoltre, l’euro debole è stato una benedizione anche per la sua abitazione. Due anni fa avevano affittato un bilocale a Gracia, un quartiere di moda, per 2.000 euro al mese, ovvero intorno a 2.650 dollari con il tasso di cambio di allora, ma oggi pagano circa 2.200 dollari al mese. Con l’abbassamento dei costi, la coppia ha deciso di prendere spazio supplementare per gli ospiti e a gennaio ha affittato un monolocale con un ampio terrazzo sopra il loro per 1.000 euro al mese, ovvero 1.100 dollari.

Alex Vaughan, socio fondatore di Lucas Fox che tratta residenze di lusso in Spagna e Portogallo, ha fatto sapere che gli americani tradizionalmente costituivano appena l’1-2% della sua clientela, ma lo scorso anno quel dato è cresciuto al 5% e continua ad aumentare. Lo scorso autunno, anche Engel & Völkers, un’agenzia immobiliare di lusso di Amburgo che punta sulla clientela internazionale, ha aperto un ufficio a Madrid che progetta di dotare di più di 200 venditori multilingue, e due anni fa la società aveva aperto una filiale delle stesse dimensioni a Barcellona. L’obiettivo è assimilare la ricerca di un’abitazione al processo tipico del mercato statunitense, ha spiegato il socio amministrativo Philipp Niemann. “Siamo preparati agli acquirenti con i bigliettoni verdi”, ha aggiunto.

PARIGI. Amanda e Michael Drinnan, che vivono nella San Francisco Bay Area, hanno da tempo un pied-a-terre a Parigi, ma lo scorso autunno hanno deciso di cercare un appartamento più ampio in una zona più centrale. Hanno trovato un monolocale con i soffitti alti nella zona di moda di Marais per 785.000 euro, all’epoca circa 980.000 dollari, e hanno iniziato le trattative a novembre. Stanno progettando di chiudere a metà aprile e al tasso di cambio odierno pagherebbero circa 864.000 dollari. Questi conti spiegano perché “la nostra posta sta esplodendo di potenziali proposte di acquisto”, ha commentato Miranda Bothe, fondatrice di Paris Property Group, un’agenzia immobiliare che serve gli stranieri compresi i Drinnan e Suydam. “I media sostengono che sarà uno a uno”, ha affermato Bothe, riferendosi al pareggio del tasso di cambio. “Pertanto la gente capisce che se cerca ora potrebbe chiudere proprio al momento giusto”. A Parigi, le tempistiche classiche per la chiusura di un affare sono tra i due e i tre mesi, ha aggiunto Bothe.

Dopo aver latitato nel periodo che ha seguito il 2008 lo scorso anno gli acquirenti americani di fascia alta erano già tornati, ha commentato Charles Marie Jottras, presidente di Daniel-Feau/Christie’s International Real Estate. Lo scorso anno hanno rappresentato il 19% dei compratori stranieri della società in Francia, in rialzo dal 14% del 2010, ha aggiunto Jottras. L’incremento di acquirenti americani per le proprietà di lusso di Parigi sotto i due milioni di euro è parzialmente dovuto al fatto che questo segmento sta vendendo al 15% in meno in euro rispetto al 2012, ha spiegato Marie. Combinando il nuovo tasso di cambio, gli americani si ritrovano un elevato sconto. Inoltre ci sono più possibilità di scelta: l’offerta di appartamenti di fascia più elevata è aumentata, ha riferito Kraft di Sotheby’s, parzialmente in reazione alle nuove tasse sul patrimonio e gli asset. Si pensi che, all’inizio di febbraio Susie Hollands, un’agente immobiliare di Vingt Paris, guidava per Parigi per mostrare le proprietà a un potenziale cliente che, tra un appartamento e l’altro, controllava sul telefono, insieme al proprio consulente fiscale, le ultime decisioni della Bce e quanto avrebbero potuto influenzare il tasso di cambio.

TOSCANA. Gli agenti immobiliari riportano un aumento delle richieste da parte della clientela americana da gennaio, ma fanno presente che alcuni clienti esprimono delle perplessità. Mike Braunholtz, direttore vendite di Prestige Property Group, un promotore immobiliare europeo con sede nel Dorset, ha spiegato che alcuni clienti temono che se la Grecia lasciasse l’euro la valuta potrebbe colare a picco, danneggiando il valore delle proprietà europee sul lungo periodo. Altri hanno paura di comprare troppo presto e perdere lo sconto che potrebbe garantire un’ulteriore discesa dell’euro. Inoltre John Jonk, responsabile vendite di International Realty in Italy di Sotheby’s, ha aggiunto che alcuni americano stanno studiando dei sistemi per proteggere i propri investimenti. “Lo scorso anno all’inizio dell’autunno ho venduto una bellissima casa a un cliente di New York. Prevedeva che il dollaro sarebbe arrivato alla parità, quindi si è coperto” finanziando l’acquisto parzialmente in contanti e in parte con un mutuo nominato in euro, ha riferito Jonk. In questo modo ha bloccato il tasso di cambio con la tranche in contanti. Se l’euro in futuro scenderà ulteriormente, progetta di estinguere il saldo del prestito.

Ma il dollaro forte potrebbe anche lavorare contro gli americani che intendono vendere le proprietà europee, se dovranno cambiare gli euro in dollari. Nel 1995, Jerry Stafford ha comprato un “vecchio fienile” in Toscana insieme alla moglie italiana, Anna Duzzi, una professionista del settore del moda in pensione. Hanno passato anni a ristrutturarlo per farlo diventare una tenuta da 5.500 piedi quadrati con i muri di pietra e poi l’hanno messo sul mercato nel 2011 a 3,5 milioni di euro, circa 4,6 milioni di dollari all’epoca. Oggi chiedono 2,6 milioni di euro, ovvero 2,9 milioni di dollari circa. Tuttavia Marta Romolini, co-fondatrice di Romolini Immobiliare, affiliata a Christie’s International Real Estate in Toscana, afferma: “Non abbiamo subìto l’enorme calo di prezzi che hanno avuto altri paesi nel 2008”. Al contrario i proprietari sono rimasti fermi sui prezzi, causando l’aumento dell’offerta e i prezzi, infine, hanno iniziato a calare negli ultimi due anni, in alcuni casi fino al 50%, ha spiegato Romolini. I nuovi prezzi, insieme al tasso di cambio, stanno iniziando ora ad attirare nuovamente gli americani in un mercato che dalla crisi finanziaria avevano evitato, ha riportato Valerie Bottazzi, proprietaria di Tuscany Real Estate. L’incertezza sull’euro ha ostacolato i tentativi di vendere la sua proprietà, ha ammesso Stafford, che si occupa di ricerca di mercato nel settore. Tuttavia, non si pente neanche lontanamente di essersi trasferito in Toscana. “Ho la qualità di vita migliore al mondo”, ha affermato.

 

For more information visit:

http://www.milanofinanza.it/news/l-immobiliare-di-fascia-alta-conquista-gli-investitori-statunitensi-grazie-all-euro-debole-201503061917297669

Gli italiani riscoprono il mattone e tornano a comprare

Un ultimo trimestre migliore dei precedenti è quello che chiude il 2014 sul fronte delle transazioni immobiliari. È quanto sancisce il rapporto dell’agenzia delle Entrate che pubblica quest’oggi una fotografia confortante del trend che il mattone residenziale ha imboccato nel nostro Paese. Dopo aver toccato il livello minimo di transazioni immobiliari nel 2013 (tornate ai livelli del 1985), il settore rialza la testa e tenta il recupero. 
Da ottobre a dicembre 2014 sono state registrate 116.543 vendite, in aumento del 7,1% rispetto a un anno prima. Nel primo e terzo trimestre dell’anno il segno delle transazioni era stato comunque positivo (rispettivamente +4,1% e +4,2%), mentre gli scambi sono calati dell’1% su un anno prima nei tre mesi tra aprile e giugno. L’anno scorso si è chiuso con 417.524 compravendite di case, in linea con le previsioni dei maggiori Osservatori. Siamo lontani dal bollettino di guerra del 2012, scandito ogni quarter da perdite a due cifre e culminato nel calo del 30,5% degli scambi nell’ultimo spicchio dell’anno. E’ ancora presto per parlare di ripresa sostenuta, anche se certo la strada imboccata è quella di un recupero che nei prossimi trimestri potrebbe venire confermato dai dati. E non si può più sostenere, come è avvenuto nel primo quarter 2014, che il buon risultato è dovuto anche allo spostamento dei rogiti dalla fine del 2013 al 2014 per beneficiare delle imposte di registro più leggere, passate dal 3 al 2% per la prima casa e dal 10 al 9% per la seconda. 
Già dal 2013 le variazioni negative hanno perso intensità. “Il 2014 si è aperto con un tasso tendenziale positivo, seguito da un trimestre al ribasso e si è chiuso con il terzo e quarto trimestre con rialzi che si consolidano” recita il comunicato. In totale sono stati 920.849 gli scambi se si sommano le pertinenze (in genere box e posti auto), uffici, negozi e così via. Il comparto comprensivo di tutti i settori ha visto nel quarto trimestre transazioni in aumento del 5,5% e sull’anno dell’1,8%, sul quale pesa il dato negativo del segmento commerciale (-4,6%)….

For more information visit:
http://www.casa24.ilsole24ore.com/art/mercato-immobiliare/2015-03-05/italiani-riscoprono-mattone-095208.php?uuid=AbUOerML

QIA takes full control of Italy property

MILAN: Qatar’s sovereign fund has taken control of one of Italy’s prime business areas after buying out other shareholders in a move hailed as heralding a new era of inward investment for the recession-bound country.

Property group Hines Italia announced yesterday that the Qatar Investment Authority (QIA) had taken 100 per cent control of the Porta Nuova district in Milan, in which it has held a 40pc stake since 2013.

Hines, insurer Unipol and several investment funds were among the selling shareholders in a 25-building development conservatively valued at more than two billion euros ($2.2bn).

Media reports said initial investors in the project had cashed out with a 30pc profit in their pockets.

The district of Porta Nuova, which takes its name from an early 19th century Napoleonic gate, was subject to one of the most ambitious programmes of urban regeneration ever undertaken within the historic centre of a major European city.

Situated barely a kilometre from Milan’s iconic Gothic cathedral, the district is home to a number of landmark buildings including the cutting-edge headquarters of Italian bank Unicredit and the “Bosco Verticale” (Vertical Forest), a complex of two award-winning residential skyscrapers.

For more information visit:
http://archives.gdnonline.com/NewsDetails.aspx?date=04/07/2015&storyid=396772

A room with a view: Why Brits are flocking back to Italy’s Lake Como

It was the Romans who discovered Lake Como, and built their villas overlooking its stunning scenery. Today, the Mediterranean microclimate created by the lake’s waters is enjoyed as much as ever, though many now prefer an apartment in place of a villa. Aside from the views across the lake, and the uniquely benign climate it bestows on the area, the location has other attractions. To the north and west are snow-capped mountains and the border with Switzerland, while not far south is the bustling city of Milan.

Shaped as an upside down Y, the lake starts in the north at Colico, then splits near Menaggio with an eastern branch extending down to Lecco and the western finger having Como at its southernmost tip.

Property prices in the area are such that buyers generally purchase a home around the lake to actively use it, rather than purely for investment purposes. And while the Italian market has suffered, Lake Como retains an international appeal, meaning prices have been more or less resilient.

“We saw the Americans pull right back,” says Rupert Fawcett of Knight Frank’s Italian office, “but they have recently returned in strength. We’ve seen an immediate and very strong pull back from the Russians, but I’m sure the Russian market will be back.” Meanwhile, the Brits are showing stronger interest again and several agents are tipping UK buyers for a resurgence of activity in 2015.

Fawcett notes that the outlays on owning Italian property are relatively reasonable, with low local taxes and no fears of other wealth taxes being introduced.

“The majority of the product is period,” he adds. For those needing more space, there are villas on the market, while apartments are usually created from splitting larger old buildings. In such a setting, redevelopment sites are hard to find, but on rare occasions there is the opportunity to build new homes, such as those at Como Lake Resort.

Perched on the lake shore, the 13 apartments in the development near Cernobbio are arranged in two linked blocks, each angled to make the most of the views. The quality of the building and interiors is very much pitched at international buyers, says Fawcett, while the blocks offer a mix of shapes and sizes of apartments with between two and four bedrooms. Located on the western branch of the lake, they are just 30 kilometres from Milan’s Malpensa airport, and 10 kilometres from Como town.

Designed for lake enthusiasts, the apartments have lift access to a private boathouse beneath, with the capacity for dry storage, as well as space to tie up alongside. Cars are accommodated in three levels of parking directly off the Regina Highway at the rear of the site, accessed via two vehicle lifts. Residents share gardens, an outdoor pool and their own small private beach.

“Sales have been to an eclectic mix of nationalities,” says Fawcett. More than half of the 13 apartments are already sold, with those remaining priced between €1.2m and €2.8m. The views, however, are priceless.

 

For more information visit:

http://www.cityam.com/209844/room-view

Italian mansion the same price as a two-bedroom flat in London

A grand Italian mansion that Napoleon used as his headquarters has gone on sale – and it’s the same price as a two-bed flat in London.
Villa La Voglina was built in the 17th Century by the world-renowned Baroque architect Filippo Juvarra.
The historic property, in the Piedmont of Italy, is set in 61 acres (25 hectares and boasts 15 bedrooms, 10 bathrooms and a private chapel which seats 30 people.

In 1800, Napoleon used Villa La Voglina as his headquarters for the Battle of Marengo.
Napoleon’s forces overcame General Michael von Melas’ surprise attack on June 14, 1800, near the Italian city of Alessandria.
As a thank you to the French ancestors of the villa’s current owner, Napoleon ordered the captured Austrian troops to build the current terrace.

The property boasts formal gardens and terraces along with a vineyard which, if restored, could produce around 100,000 bottles of wine per year.
The owners have put the villa and its grounds on the market with Mayfair estate agency Beauchamp Estates.
The estate is on the market for £3.8 million – the same as a two-bedroom flat that Beauchamp has for sale in Eaton Square, London.

 

For more information visit:

http://www.itv.com/news/2015-02-08/italian-mansion-the-same-price-as-a-two-bedroom-flat-in-london/

Cerberus set to buy Italian property portfolio for $286 mln-source

Feb 4 (Reuters) – U.S. investment firm Cerberus Capital Management is set to finalise a deal to buy a portfolio of Italian state-owned properties by the end of February, a source close to the matter said on Wednesday.

A successful sale will bring 250 million euros ($286 million) into the coffers of real estate investment fund Fondo Immobili Pubblici (FIP), the source said. Other foreign investors were also interested in buying the package of properties being sold to Cerberus, which includes barracks rented out to Italy’s tax police.

The deal is evidence of a revival in foreign investor interest in such real estate assets after years of failed attempts by the government to sell some of its properties.

Blackstone bought a 250 million-euro package of properties from the FIP in December.

As of end June 2014, FIP had a total of 238 properties with a market value of 2.7 billion euros, according to its website.

CBRE Group is FIP’s adviser for asset disposals while the fund is managed by Investire Immobiliare Sgr, the real estate unit of Rome-based lender Banca Finnat Euramerica . ($1 = 0.8754 euros) (Reporting by Massimo Gaia; Writing by Francesca Landini; Editing by Greg Mahlich)

 

For more information visit:

http://www.reuters.com/article/2015/02/04/cerberuscapital-italy-real-estate-idUSL6N0VE3K420150204?irpc=932

Time to buy a home abroad? Where the strong pound meets inexpensive housing

Property prices are recovering – and your pound will go further. Telegraph Money research reveals where people are looking, and where the bargains can be found.

Data compiled for Telegraph Money shows a surge in interest among British buyers looking to buy abroad, driven by the pound’s new strength against the euro.

Buying a €500,000 Italian property, for example, now saves £26,041 compared with January 2014.

The euro has weakened against sterling because of fears over quantitative easing, designed to rescue languishing European economies, and a possible standoff between Europe and Greece. All this has pushed the pound to a seven-year high, boosting the spending power of sterling buyers.

Now, 48pc more Britons are searching for property in Spain and Ireland than a year ago, Rightmove data shows. Interest is also up elsewhere. In the United States it has increased by 38pc.

Our extensive research, presented in the charts, below, shows which countries balance cheap exchange rates with inexpensive housing, using official figures from Eurostat, the EU’s data agency, and the OECD.

HiFX, a foreign exchange firm, echoed Rightmove’s data, registering a 27pc rise in inquiries from Britons who want to buy property in the eurozone. Buyers shouldn’t delay, experts say, as the pound could weaken as the general election draws closer.

“A hung parliament will inevitably leave markets uncertain as to which political party will govern the country and the pound is likely to weaken,” said Andy Scott of HiFX.

Sterling also buys more currency outside the eurozone. Marianne Gilmore, of foreign exchange specialist Moneycorp, said that now was a good time to buy Polish zloty or Croatian kuna, where exchange rates are far better than in 2014.

Sterling doesn’t go quite as far now in Switzerland, following the country’s decision to float its currency free from the euro. In mid-January £100 would have bought 155 Swiss francs, now this sum buys 137 francs. With prices for a small chalet in the Alps starting at around £2.5m, Swiss property is further out of reach of British buyers.

See also: One country you haven’t thought of – where your pound now goes 30pc further

Where property buyers are searching – and what the market says

Country Annual increase in property searches (per cent) Typical mortgage rates Annual change in house prices, December 2014 Undervalued or overvalued by OECD?
Ireland 48% 5.25% 15% Undervalued
Spain 48% 2.75% 0.3% About right
France 41% 2% -1.2% Overvalued
Italy 41% 3% -3.8% Undervalued
Greece 32% Restricted lending Not tracked Undervalued
Portugal 22% 5% 4.9% Undervalued

Sources: Rightmove, Simon Conn, Eurostat, OECD

What next for prices?

Property values across Europe are on the rise again, according to figures from Eurostat. The most dramatic increase was in Ireland, which saw 15pc annual price growth towards the end of 2014. Michael Grehan from Irish estate agent Sherry Fitzgerald said there was every reason to expect further increases.

“This will be particularly evident in urban centres where supply is most constrained,” he said, particularly for three and four-bedroom homes.

Monaghan, a county near the border, saw a threefold increase in interest from British buyers over the past year. Estate agents estimate that rural locations are undervalued by as much as 60pc and therefore offer strong investment potential.

Portuguese property values rose by 4.9pc from 12 months ago, a far cry from the end of 2013, when prices increased by just 0.6pc.

In the second quarter of last year Spain saw its first growth since 2011, a 0.8pc increase. Murcia, which is in the south-east and popular with British expats, has seen the biggest increase in property searches (75pc more than last year). Currently, the average budget for a British buyer in Spain is £379,000, higher in Barcelona (£556,000) but lower in Lanzarote (£109,000).

French and Italian markets are struggling, with prices in France down by 1.2pc, and 3.8pc lower in Italy. Experts say a lack of interest from wealthy foreign buyers, such as Russian investors, has had an effect, disguising an otherwise strong property market.

Roddy Aris of Knight Frank International said: “We expect to see ‘super-prime’ property prices continue to come down in 2015, after a 7pc price drop across the French Alps, but the core market will remain buoyant.”

The Eurostat House Price Index shows strong growth in Ireland and Portugal

Undervalued markets

Housing markets in Italy, Ireland, Greece, Portugal and Germany are said to be undervalued, according to two main measurements used by the OECD, last collected in May.

The first uses a price-to-rent ratio, which measures the profitability of owning a house. The ratio is compared with the long-run average to see if it is higher or lower.

The second ratio plots prices against wages.

“There is a growing sense that prices are low by historical standards and that there is a considerable upside for early investors moving into these markets,” said Liam Bailey of Knight Frank.

For overpriced property, the data points to Britain and France.

House prices in the US, also viewed as undervalued by the OECD, have staged a strong recovery. But property is still cheaper than in Britain, despite a strengthening dollar. The average UK house price of £250,000 buys a seven-bedroom home in Davenport near Orlando, Florida. Mr Bailey said: “The US is looking interesting and New York, Miami and LA should take off in 2015.”

Country Annual rise in real terms Price vs rents Price vs wages
France -2.2% (2013) 129 128
Germany 5.1% (2013) 91 83
Greece -7% (2013) 84 103
Ireland 4.3pc (2013) 96 92
Italy -5.5% (2013) 93 108
Portugal -1.5% (Q1 2014) 83 94
Spain -4.9% (2013) 104 107
UK 3.5% (2013) 134 125
US 6.6% (2013) 104 90

OECD Data, May 2014, where 100 indicates house prices are in line with rents or wages

MAP: countries with the cheapest and most expensive property markets

Falling mortgage rates

You can borrow at home on rates as low as 1.19pc for a two-year fix. Many may remortgage against a pumped-up UK house price to fulfil foreign ambitions.

Costs abroad are higher – but falling. Europe’s central bank, with its official rate already at 0.05pc, will drive down market rates with its QE plan.

In France the best 15-year fixed rates have fallen to 2.55pc and should fall further.

Simon Conn, an overseas broker, said: “British borrowers are increasingly interested in Spain, the Balearics and the Canaries, where interest rates are around 2.75pc and lenders expect a 30pc to 40pc deposit.

“Italy is still flourishing, with Umbria and Tuscany more popular, due to interest rates of around 3pc, not as low as France or Spain.”

In Ireland, where lenders remains cautious, borrowers must pay a 50pc deposit for holiday homes, and 40pc for buy-to-let, with rates at 5.25pc.

Borrowing in an undervalued market, such as Greece or Bulgaria, can be nigh impossible, Mr Conn warned. “Greece is still very restrictive on lending, unless the property is worth at least £1m, but this may improve in 2015.”

Outside the eurozone, expect to pay 3pc in the US and 4.5pc in Australia.

– One country you haven’t thought of – where your pound goes 30pc further

How much are British buyers willing to spend?

Country Most popular destination Average budget of a British buyer
Ireland Cork £134,000
Spain Andalucia £379,000
France Aquitaine £202,400
Italy Toscana £107,000
Portugal Algarve £397,000
Bulgaria Burgas £24,000
USA Florida £135,000

Source: Rightmove, December 2014

 

For more information visit:

http://www.telegraph.co.uk/finance/personalfinance/11341099/Time-to-buy-a-home-abroad-Where-the-strong-pound-meets-inexpensive-housing.html

Mortgage deals proving tasty in expat hot spots

According to the OverseasGuidesCompany.com inquiries from would-be overseas buyers are up 17pc since 2013. Spain, France, Portugal and Italy are all attracting interest from Britons. And partly, that’s thanks to low mortgage rates.

Angelos Koutsoudes, head of OverseasGuidesCompany.com, said that nearly a quarter of its inquiries are from those wanting to buy in Spain, thanks to mortgage rates from 2.75pc and availability of cheap properties.

According to spanishpropertyinsight.com, there are around 1.4m empty properties in Spain. In the Malaga region – popular with UK expats – there are 120,611 vacant homes, depressing house prices. And while Spanish property prices have been rising recently, they fell back last month by 6.3pc. That takes prices back to levels last seen in March 2003.

Tancred de Pola of Costa del Sol mortgage specialists thefinancebureau.com says that Britons are keen to pick up property deals, and account for around a third of its business, having almost disappeared in the years following the crash. “Apart from the UK we’ve seen an increasing number of buyers coming from the Middle East, particularly Dubai, Abu Dhabi and Kuwait. They first came 25 years ago – but back then, they were cash buyers.”

If you don’t fancy Spain, the French property market is also attractive to British expats. John Busby of French Private Finance says that mortgage rates in France are now as low as a 20-year fixed rate of 2.9pc. He added: “When I first started in this market the thinking was that if you would be able to fix your mortgage under 4pc for 20 years, you would be onto a winner. Not many things are fixed or certain in this world but a French mortgage can be and I think you can be fairly certain about the value of 2.9pc fixed over 20 years.”

Italy is another popular location for UK expats to buy in and mortgages for expats go from 2.95pc. Mr Koutsoudes says that Italy has become more attractive thanks to a cut in property purchase taxes. He added: “Other reasons for its growing popularity include its lack of inheritance tax and no capital gains tax after five years.”

The Italian property market saw a 3.6pc increase in buying and selling in the third quarter of 2014, with city properties very popular. Most would-be buyers of fractional ownership company Appassionata’s latest property, Casa Tre Archi in the hilltop town of Petritoli are from the UK and US. A one-tenth share costs £65,000. Dawn Cavanagh-Hobbs, founder of Appassionata, said: “Given the average second-home owner is unlikely to use it for more than a few weeks a year anyway, fractional ownership makes perfect sense.”

 

For more information visit:

http://www.telegraph.co.uk/finance/personalfinance/expat-money/11308892/Mortgage-deals-proving-tasty-in-expat-hot-spots.html