Spain is still the overseas property hot spot for British expats, despite plunging prices and developers scamming foreign owners by selling homes built on protected land.
Despite these problems, expats say warmer weather and an easier going lifestyle are the big attractions for moving to the country, according to a new study.
According to a report by online property portal Rightmove, half of those looking to buy overseas are seeking a holiday home but will stay resident in Britain, while around a third plan to leave Britain for good and 13% will buy as investors.
Spain is also the favourite place to buy for those approaching retirement, with nearly two-thirds telling researchers they expect to buy a home there within two years.
After Spain, France was also popular with expats and second home owners, said the study.
Attractive lifestyle
Rightmove also revealed that despite the credit crisis, the number of people looking for a home overseas was up 20%, peaking in the summer when potential buyers went to Spain and France to research places to buy.
January also spikes on searches as people think about a change of lifestyle in the dark and miserable winter months.
Shameem Golamy, head of overseas at Rightmove, said: “Spain has always tempted British expats and our latest research shows that despite economic problems and issues over property ownership, the British romance with the country has not waned.
“Buyers are not necessarily looking for a permanent move, though. Many are cashing in on the low property prices as an investment or seeking a value for money holiday home.”
As a guide for buyers, Rightmove has compared the average price of a home in Britain with properties in the four most popular overseas destinations for expats and investors.
What expat money can buy overseas
The average asking price in Britain is £243,860 – which can buy:
- A three bed villa in Alicante, Spain, for 275,000 euros
- A five bed house in Brehan, Brittany, France for 288,000 euros
- A three bed villa on the Algarve, Portugal, for 285,000 euros
- A four bed house in Florida, USA, for $390,000
According to house price trackers in Spain and Portugal, prices are still falling and more bargains may yet surface on the market before home values bottom out – which is expected to happen sometime later this year.
Prices in France are steadier – much like the UK with the highest rises around London and rippling out to the regions, Paris homes are more expensive with prices cheaper in the regions.
The US home market has seen a steady year-on-year growth in prices.
