Italy, france and portugal highlighted as second home hotspots

Florence, Italy, where property prices have fallen 20pc since the 2008 financial crisis Photo: Nadio

A report from Knight Frank compares favourite second home destinations in Europe to six years ago to rank those offering the best opportunities for buyers thanks to falling prices.

According to recent statistics from Eurostat, property prices in the Eurozone fell 1.4 per cent in the final quarter of 2013 year-on-year, while values in the EU slipped 0.1 per cent. On a quarter-on-quarter basis, prices fell by a less severe 0.7 per cent in the Eurozone and by a steeper 0.3 per cent in the EU overall; an indicator of just how varied the rates of recovery from the financial crisis are.

The largest annual fall was recorded by Croatia, which saw values plunge 14.4 per cent, ahead of Cyprus (a fall of 9.4 per cent) and Spain (6.3 per cent). Estonia and Latvia's rapidly rebounding markets led the improvements, with annual growth of 15.6 per cent and 7.9 per cent respectively.

The largest quarterly dips occurred in Hungary (1.8 per cent), Spain (1.3 per cent) and Denmark and Italy (1.2 per cent). Parts of such destinations, which are more popular among second home buyers, though, are also starting to enjoy a rebound, making them highly favourable for those looking to invest.

Indeed, Quinta do Lago in Portugal's Algarve has seen prices fall 20 per cent since 2008's crisis, but prime property values are beginning to increase as of March 2014, reports Knight Frank. The second is true of Florence in Italy and Chamonix in the French Alps. Umbria in Italy is seeing values climb again after a fall of 30 per cent, while Gascony in France is enjoying positive growth on the back of a massive 45 per cent drop.



Luxury prices in traditional lifestyle destinations such as Marbella and parts of Mallorca are still slipping, notes Knight Frank, but the rate of decline has slowed considerably.

"Not only are luxury prices significantly below their 2007-08 peak but many second home destinations now have the best choice of properties on the market for the past six years," says the firm.