Editor’s note: This item is republished with permission from Global Edge Marketing Ltd. The original post can be viewed here.
British overseas homebuyers are reverting back to more traditional second-home destinations, according to a survey of 1,200 second-home owners by Savills International.
During the overseas property boom, the proportion of Brits buying outside of Western Europe grew significantly as buyers became motivated by the potential for capital gains. However, since the market turned in September 2008, buyers have returned to the traditional favorites of Spain, France, Portugal and Italy.
"In 2010, the overseas second-home market will be characterized by cash-rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots," says Charles Weston-Baker, head of Savills International.
The survey data also confirms that 2009 was one of the worst years for the industry. From 2003-08, 70 percent of respondents invested in overseas property, but just 2 percent had in 2009.
"While (United Kingdom) overseas homeownership has doubled since 2001, recent global recessionary trends have seen take-up levels dramatically slow. Factors such as fewer overseas holidays, reduced leisure spend capacity and financing availability, unfavorable exchange rates and declining house prices have impacted second-home purchasing activity," commented Rebecca Gill, research analyst at Savills International.
20 percent of owners plan more purchases
The positive news is that a fifth of respondents said they are considering or planning additional (vacation) home purchases in the future. The top 10 destinations being considered were France, Spain, Portugal, the United States, Italy, Greece, Cyprus, Morocco, Brazil and Turkey.
However, further property price falls, better mortgage availability and a strengthening of sterling against the euro are all necessary conditions before the market returns to anywhere near the transaction volumes of 2007.
Copyright © 2010 Global Edge Marketing Ltd.
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