Lloyds TSB International research reports that overseas property investors sat out some during the recession, but with property prices falling and falling, many of them are now beginning to re-enter the market having much more confidence and finding some amazing deals.
Some British investors have held off during the last three years, watching as some property prices have fallen up to 40 percent. Research reveals that sales are still sluggish in some areas, but optimism remains that sales will pick up as more investors enter the market.
According to the National Federation of Estate Agents in France, property prices in France increased in 2010, which is the first time since 2007 that values have gone up. Additionally, the Germany real estate group, IVG, reports from the latest research that Spain’s property market is expected to recover at a quicker pace than the rest of the economy.
Barry Luhmann, head of lending at Lloyds TSB International, states that some of the markets that were hot in 2007, such as Spain and the US, are now full of deeply discounted deals.
Spain’s average housing prices have decreased 23 percent since the 2007 peak, although key tourist destinations such as Ibiza and Costa Blanca have seen as much as a 40 percent decrease. Such declines in prices have British buyers evaluating their finances and the market much more seriously.
As the economy improves, investment interest will increase not just in Spain, but all around the world. As the economy shows more signs of stability, the real estate sector will see noticeable, positive changes as well.
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