A mix of historically low interest rates, bargain property prices and a strong pound is tempting British investors back to the overseas property market, overseas mortgage firm Conti has reported.
In the first three months of 2014, Conti saw enquiries increase by 90% compared with the same period in 2013.
The firm has seen a marked shift in interest for Spain in particular over the last six months, accounting for 58% of enquiries received at the current time. This is the first time that a single country has accounted for such a large percentage of enquiries at Conti.
Prices in some of the most desirable areas of Spain have fallen by up to 50% since 2007, but prices are starting to creep back up in some areas.
France, which still accounts for 29% of enquiries, continues to offer a safe haven for British buyers. Mortgage rates are currently at their lowest in more than 60 years and a slower property market has been pushing prices down.
Clare Nessling, director at Conti, said: “Signs of confidence returning, especially in relation to the Spanish market, started appearing last year. But the first three months of 2014 have been particularly encouraging. Mortgage rates are very low, the pound has been getting stronger, and prices are still at bargain levels in many areas.
“It’s a great time to buy and people who have been putting their plans on hold for the last year or two are taking advantage of the favourable conditions open to them.”
Spain and France may be dominating the hotspots list, but Portugal is also growing in popularity again, moving back into third place. The Portuguese property market was one of the worst hit by the financial crisis, but with its economy on a much sounder footing, the country has waved goodbye to its worst recession since the 1970s.
Conti says this has provided a boost to investors’ confidence, together with bargain property prices and a stronger pound, is leading to an increasing number of buyers coming back to the market in search of opportunistic bargains.