The country is steaming ahead with a massive 43 per cent share of mortgage enquiries received by the company this year, an increase of 12 per cent compared with the same period in 2009, and a massive jump of 29 per cent compared with 2008.
Not so close behind, but still in second place, is Spain. Despite the doom and gloom, it has defied the odds, claiming an impressive 24 per cent of enquiries, up by two per cent on last year, and by nine per cent since 2008.
Turkey, holding on to third position, continues to enjoy a booming market, increasing its share to 18 per cent, an increase of five per cent since last year, and seven per cent over the last two years.
These three countries are dominating the hot spots table and together now account for a staggering 85 per cent of all enquiries received. Investors are focusing on tried and tested locations more than ever before, whilst the flurry of interest we saw in the far-flung emerging markets in 2008 seems to have totally disintegrated.
The only other country in Conti’s top ten to see a significant increase in enquiries over the last year is the USA, rising from one per cent to five per cent. Florida, where property prices have plummeted over the last couple of years, is particularly popular, with many homes being sold for less than it cost to build them. A Conti client recently bought a two-bed property in Orlando for $65,000, when in 2006 it actually sold for $210,000.
Clare Nessling, Conti’s Operations Director, says:
“The percentage of people enquiring about French mortgages has more than tripled over the last two years, and it’s currently out on its own as far as popularity goes. Not to be outdone, however, Spain is still holding on strong, and has experienced an increase in enquiries over the last year, despite the negative headlines, and still accounts for a quarter of enquiries received.
“It’s clear that investors are favouring the tried and trusted locations when it comes to overseas property. But they also want easy access, good rental opportunities and security with price appreciation over the long term. On top of this, the falling value of the euro has made property in the eurozone around 10 per cent cheaper to British buyers over recent months, so this is also contributing to the increasing popularity of France and Spain.”
France, Spain and Turkey – why so popular?
The French mortgage market is very stable, largely due to the cautious approach adopted by its financial institutions in the past. This means that it’s in a strong position to lend, and it’s still possible to borrow up to 100 per cent of the value of a property. The country is extremely attractive to prospective investors, thanks to historically low interest rates and reduced property prices, so they’re very well placed to pick up a bargain.
Buyers of Spanish property are also in a strong position due to the number of homes available, low interest rates, and the opportunity to negotiate price reductions from some very motivated vendors.
Prices in some areas, such as the Costa del Sol, have plummeted by 40 per cent since the peak in 2006/7. Spain is still willing to lend to non-residents and you can still generally borrow up to 70 per cent of the value of a property.
Turkey offers some great property prices and all the benefits of its Mediterranean location. Tourism has risen dramatically over the last few years, which will ensure that demand for quality rental properties in the popular tourist areas will continue to outstrip supply, making rental yields very lucrative.
Overseas Mortgages
Conti is the UK's leading overseas mortgage specialist, providing finance for purchasing holiday homes, investment and retirement properties in more than 45 countries. All mortgage applications are processed and underwritten by Conti’s teams of specialists, who know the exact requirements for each overseas lender.
It can also ensure that clients are put in touch with specialists in the country in question, to enable then to comply fully with planning and legal conditions and assist with currency exchange.
