Jan 19, 2015
As the European housing market continues to improve, following the global financial crisis, one of the main investment sectors is set to be that of British purchases in mainland Europe. The UK saw an increase in its own property prices in 2014. Growth in the April to June period, compared to the same period the previous year, was 10.2%, the third highest in Europe behind Estonia 14.5% and Ireland 12.5%.
Taking into account the strong UK market it’s easy to see why there is predicted to be a continuing interest of UK investors in the value for money mainland Europe property markets.
Which parts of Europe present the best property investment opportunities?
The dip in the French market during the financial crisis was more drastic than in the UK so the recovery has been slower. French property prices are also considered to be over-priced by 29% against rents and 28% against wages. On the positive side mortgages in France have become a much cheaper acquisition for British investors. The Spanish market appears to have stabliised with last year seeing the first price rise for property since 2008.
The hot spots of Madrid and Valencia
Considering the stability in the Spanish market, attractive markets such as Madrid and Valencia look set to surge in popularity this year. Madrid is finally rising from the ashes of the financial crisis where it lingered for seven years prior to the 17% increase in property sales during 2014. Valencia saw an even more impressive increase of approaching 30% on the previous twelve months. This city is extremely popular with foreign visitors with its impressive pristine beaches. It’s also an increasingly vibrant urban landscape which is a hub for financial investment.
Within these two major cities there are certain areas which seem to provide a very impressive property investment opportunity, including Old Town in Valencia and Justicia, Chamartin, Salamanca and Justicia in Madrid. The current Spanish property market seems to provide everything that a foreign investor could want, including excellent value for money, an amazing lifestyle in a beautiful environment and safety for any investment on a long term basis.
As the central European housing market continues to recover from its low point, investors will be taking advantage of the current value for money which should bring a good return on investment as the housing market continues to improve.
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