Will prices for holiday homes abroad also drop?

Sapphire

I just wondered what everyone's thoughts on this were, given that so many people from the UK have tried to invest in property abroad, not just in the UK.

Will the property price drops in the US and UK have a knock-on effect the property prices in all the other places where the British have been buying property, such as France, Slovenia, Poland, Turkey, Italy, and so on?

I believe Spain has experienced a slowdown in house price rises recently, but don't know by how much. :cool:

webhamster

spain from what i have seen when over its not uncommon for proerty to be on the market for four years on the majority i have seen of late .....that led to their slowdown ie adjustment.Theres still the golf properties being built en masse and being sold to eager mugs.

In the case of iberia , and in particular the tourist traps , its being oversupplied and undersold which should mean cheaper prices , but its not happening that way.

If these countries want to prevent this then they will have to super council tax holiday homes and prevent further building on the scale they have now.They know this but will still choose the building option , short termism and hoping the euro bails them out wont work forever.

Phirefly

Slightly off topic from the OP's question, but I've just come back from the Costas and I can't believe how much building is still taking place. Thousands of urbanizacions miles from anywhere, their glossy billboards showing gleaming toothed families having the time of their lives. It has a tragic air to me, especially after we visited the protected costal park Calblanque which is a snapshot of how the area once was. I had thought the market would have slowed to the point where the building would start to decline but seems not.

seven-day-weekend

Phirefly, not only are they building on the Costas, but rural places inland too.

In our little tiny village in the mountains there are at least thirty new apartments due to be built. None of the twenty built two years ago are sold...

Many of the schemes are illegal.

Phirefly

Yeah I saw that too, we have use of a car out there (luckily - I'd have gone out of my brain if I'd had to rub shoulders with the Red Tops on the coast for two weeks!) and covered about 1200 miles, and I was perplexed to see these developments in the most unsuitable of places inland. I don't understand why they still build though when nothings selling....

Conrad

Depends on the proportion of UK buyers.

Morocco's tourist market has had 1.7m French, 795,000 Spannish and just 261,000 Brit visitors for 2007 (to the end of July).

I've invested in Morocco as it deliberatley set out with a 10 year plan back in 1999 and from what I've seen it is resulting in a tourism market a cut above the usual Spain, Bulgaria, Turkey markets dominated by beer swilling, Soap watching Sun reading Brits.

On my development even Budha Bars, Armani, Channel, Hilton and Carrefour outlets are being built.

In other words I think Morocco will attract middle to upper income groups from right accross Europe and Russia so less likely be impacted by UK / US credit crunch.

http://www.lejardindefleur.com

Sapphire

Thanks for your useful responses. It seems to me that prices in many places - like Spain - went up at an unprecedented rate, largely due to the purchase of properties as 'investments' by Brits rather than any other nation.

Once the crunch comes with the economy in Britain (and personally I am sure it will, quite possibly in a major way), I think the prices are likely to drop back quite a bit in many places.

I've heard that Morocco is a place where property is still quite reasonably priced.

plane_boy2000

I also suspect that a lot of overseas property has been financed by remortgaging UK property in a fast rising market. Now things are slowing (falling?) then this source of funding will dry up.

Its also a reality that as things become tighter here people are likley to stop paying mortgages on overseas properties as they prioritise their outgoings so there could be a glut of repo properties in spain etc.

daveydee

Hi

This is worth looking at...posted it in another forum... but its just as quick to repost it! Biggest case of caveat emptor.... if you're thinking of buying in SPain or Bulgaria

Interesting article about Macanthony Realty International otherwise known as MRI Overseas Property

http://news.bbc.co.uk/1/hi/england/7001445.stm

and you can view the TV programme about them at

http://www.youtube.com/watch?v=YMWpnjzIcWo (part 1)

and

http://www.youtube.com/watch?v=gtlZZTRKGDc (part 2)