Investors bullish on european property
New ski infrastructure opens this weekend in Châtel
Investors are bullish on European property at the start of 2015, as shifting exchange rates boost affordability in the face of wider uncertainty.
The euro has been buffeted by a number of dramatic events this January, from the European Central Bank's announcement of Quantitative Easing and Switzerland's decision to unpeg its Franc agains the single currency to Syriza's win in Greece's general election last weekend.
While uncertainty has spread repeatedly across the continent, though, investors are bullish on European property. The left-wing party's insistence upon remaining in the euro helped to stabilise the markets in the day following Syriza's victory, but not before the currency fell to an 11-year low against the dollar. Experts, though, are welcoming the volatility for overseas investors, advising caution, but also upbeat about the savings that could be made.
Increasing availability of properties, a strong Pound versus the euro, and rising UK house prices, means that UK buyers are in "the strongest position for some years", says FrenchEntrée.
Managing Director Guy Hibbert says: "Many of our UK and overseas clients have managed to secure some price reductions on French property in 2014. Much of this has been down to a combination of France's well publicised economic issues, global financial trends, and sustained increases in UK house prices.
While buyers have the upper hand, though advises that "there is a two-tier property market" in France:
"Foreign buyers looking to buy in enduringly popular regions such as the Dordogne and Cote d'Azur will still be required to pay a premium over native market rates for picturesque rural period properties."
Chinese investors are also expected to step up their investment in European property this year. China has become an increasingly major force in global real estate. In the US, NAR data shows that Chinese buyers spent US$22 billion on American property – a figure that shot up from US$12.8 billion in 2013.
While the US remains the American dream, though, Chinese portal Juwai.com says the lure of obtaining European citizenship has grown increasingly popular.
One in five foreign property purchases in Portugal within the first nine months of 2014 were from Chinese, thanks to the country's hugely successful Golden Visa scheme.
With a lower investment bar and the offer of accelerated citizenship, Bulgaria is also an attractive option for Chinese investors who are keen to settle in the UK but balk at the UK visa price hike.
Italy's educational opportunities means the country is "undoubtedly an attractive option", although complex Italian policy "may hinder Chinese immigrants", notes Juwai.
"One of Europe’s top second-home destinations, Spain has seen its property prices slide 30 per cent to 50 per cent since 2013, leaving a slew of prime properties to snatch up at a steal.
"2015 is also the 40th anniversary for diplomatic relations between China and the EU, and a new round of economic stimulus plans set to take effect in 2015 will mean potential opportunities and economic recovery for Europe."
Europe "should be the star of 2015", the portal concludes.
Other nationalities are sharing that bullish sentiment, with OverseasGuidesCompany.com recording an 11 per cent increase in enquiries for Eurozone property buying guides last year compared to 2013. Portugal and Spain both saw demand surge on TheMoveChannel.com in the second half of 2014.
The added turbulence at the start of 2015, meanwhile, is boosting interest from less cautious investors.
Athena Advisors reports that January has been a record month/
"With the Euro falling 14% and 22% against GBP and USD respectively over the last 10 months alone, this January has been our busiest on record for ski property, in terms of both sales and enquiries," says Lloyd Hughes, Head of Communications.
"The Swiss Franc’s movement (after the Swiss Central Bank removed the rate cap) pushed our enquiries up by 20 per cent in just a few days. The CHF moved 15 per cent higher on the Euro and Pound overnight so it's no wonder we’ve seen more buyers coming through that we’re previously targeting Switzerland."
"France is 14 per cent cheaper than 10 months ago," he adds, "and Switzerland is 15 per cent more expensive than 3 weeks ago."