Of those who would invest in overseas property, more than half (59%) said that with prices currently low, the long term capital gain opportunities were appealing.
Research conducted by holidaylettings.co.uk for its annual Holiday Lettings' Insights Report found that 25% of those surveyed would consider investing in a holiday home in order to supplement their income.
The report also reveals that Holiday Lettings' customers, holiday home owners with properties worldwide, are thought to have earned an estimated £540m this year.
The report looks at a mix of enquiry data and consumer research to track trends. Demand for self-catering holiday villas and apartments has grown 39 per cent year on year and global events such as the Royal Wedding have demonstrated the potential in the holiday lets market beyond peak summer bookings.
Countries experiencing the greatest uplift in demand year on year with some quite surprising results:
10 countries showing greatest uplift in demand
1. Sri Lanka +67 %
2. Finland +55 %
3. Indonesia + 45%
4. Trinidad & Tobago + 44%
5. Kenya +44%
6. Slovakia +40%
7. Canada +39%
8. Andorra +39%
9. Seychelles +38%
10. Wales +38%
Sri Lanka and Indonesia were also recently included in the SLIMMA list of nations that were highlighted for their predicted potential in 2012 at the World Travel Market 2011.
Investors looking for a safe bet may want to consider destinations where demand outstrips supply:
10 most popular destinations where demand outstrips supply
1. Playa d'en Bossa, Ibiza
2. Amsterdam, Netherlands
3. Playa de las Americas (Parque Santiago especially), Canary Islands
4. Portrush, UK
5. Playa Del Ingles, Canary Islands
6. San Antonio, Ibiza
7. Saint Paul's Bay, Malta
8. Saint Julian's, Malta
9. Central London (mainly Covent Garden, London Bridge, Fitzrovia), UK
10. Brighton & Hove (Brighton Marina, Kemptown), UK
Whilst some of the above are well established holiday destinations, others like Northern Ireland's Portrush could be benefiting from the popularity of local and golfing champion, Rory Mcllroy.
In London, along with the ever popular Covent Garden and Soho alternative, Fitzrovia, the London Bridge area is also seeing a huge demand due to what could be called the 'Shard Effect'.
Investors looking for pastures new may be interested in these locations where a handful of holiday lets are reaping the benefits of demand for private holiday rental accommodation:
10 destinations with capacity for growth
1. Newark, UK - close to Sherwood Forest
2. Burwash, UK - home of Rudyard Kipling
3. Seeb, Oman - charming coastal fishing town with surrounding landmarks
4. Figueretas, Ibiza - suburb of Ibiza Town with a palm-fringed promenade
5. ÿsterbro, Denmark - leafy, high-end suburb of Copenhagen
6. Waterhouses, UK - charming Peak District village
7. Cala'n Bosch, Mallorca - popular holiday resort
8. Hondon de las Nieves, Spain - hidden little gem on the Costa Blanca
9. Corfe Castle, UK - popular Dorset village
10. Wildschˆnau, Austria - increasingly popular with skiers thanks to location in the Kitzb¸hel Alps
Kate Stinchcombe-Gillies, from Holiday Lettings, commented:
"For those considering a long term investment from which they can gain some lifestyle benefits as well as additional income, holiday lets are a reliable asset.
"Self-catering holidays continue to see a huge surge in popularity as more and more people catch on to the benefits. As demand increases so too does the supply, with savvy investors spotting prime opportunities."
