Bulgaria will ‘rule the roost’

Bulgaria will see the biggest property demand in Europe over the next three years due to cheaper property prices, according to research by NatWest International Personal Banking (IPB)…

The NatWest International Personal Banking League of Buying Abroad reveals the top countries to buy properties over the next three years as:

1. Bulgaria - 75%
2. Turkey - 56%
3. France - 46%
4. Portugal - 41%
5. Spain – 31%

Over half (53%)* of brokers put the growth in demand for overseas properties down to increasingly cheaper properties and interest fuelled by the media. Likewise, a third (33%)* cited seeing an increasing number of adverts from overseas countries in UK media.

As a result, nearly a third (31%) of brokers reported an increasing number of queries from their customers. 15 per cent of brokers believed that higher prices in the UK, and a better return on investment was a reason to predict a growth in these countries over the next few years.

The growth in demand for overseas properties is due to:

•  Increasing number of articles in the media (53%)
• More adverts from overseas countries in UK media (33%)
• Increase in queries from customers (31%)
• Higher house prices in the UK and better return on investment (15%)

Whilst buyers are interested in emerging countries such as Turkey and Bulgaria, there is still demand

for the ‘old favourites’ such as France and Portugal. Spain still remains a top favourite as brokers reveal the demand for Spanish mortgages kept nearly two thirds (65%)* of them involved in the overseas market. The Spanish mortgage market is still very attractive according to four in ten brokers and almost a third felt that the demand for Spanish mortgages in the UK would continue to increase in the future.

Mike Freer, Head of Business Development for NatWest IPB comments, “The research has given us a real insight to what brokers feel will be the most successful property markets over the next few years. With the expansion of the EU, better transport links and an increase in low cost airlines offering cheap available flights to countries all over the world, the choice when buying abroad has increased significantly.

“When looking to invest abroad buyers are being braver and looking to new markets but it is also interesting to see that people still like sticking to what they know and prefer to buy in countries that they are more comfortable with and have holidayed in frequently.”

Overseas market ‘still attractive’

The overseas mortgage market is a fruitful industry as one in five (21%)* of brokers working in the overseas market for the reason that it was attractive in terms of fee incomes. There are no caps to procurement fees in the overseas market whereas brokers would get capped on the fees that they earn in the UK. On a £300,000 Spanish mortgage, a broker would typically make £1,200 from that sale whereas in the UK an average residential mortgage would generate around £500.**

Mike Freer continues, “The overseas mortgage market is attractive to brokers in terms of procurement fees, on average, procurement fees are 140%* higher than when arranging a UK mortgage. With the demand increasing for properties all over the world the market has become even more attractive to work in. It is very worthwhile hearing from brokers where they think the demand for property will be and is very reassuring to people who wish to buy abroad.”