Sat 16 Dec 2006

Spain and France back top of foreign property market

VICTORIA THOMSON

WHEN it comes to buying property abroad, France and Spain are once again the favourite destinations.

The seventh Global Property Hot Spots survey by currency specialist HiFX showed these two countries made up 55 per cent of HiFX's currency transactions for buying property abroad in November, continuing to beat off stiff competition from the bargain basement emerging markets such as the Eastern Bloc countries.

During the same period, inquiries relating to property purchases in a number of the newer hotspots either declined - in Bulgaria, Turkey and Morocco - or remained the same - in Cyprus, Cape Verde and Dubai.

Mark Bodega, HiFX's marketing director, said: "Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites France and Spain are still the first choice for British buyers."

With the markets in both countries having slowed down over the last year, Bodega added there were some good bargains coming up. It seems many canny Brits have also spotted this and are beginning to return to these traditional overseas markets.

"Spain for example, pioneered the trend to own overseas property and is still one of the UK's favourite destinations for a place in the sun," he explained.

"Whilst the market has cooled, the more traditional Brits are now looking for opportunities away from the usual hotspots, in the lesser-known costas and inland amongst the olive groves."

HiFX said purchasers fell into three distinct categories. Traditionalists - the largest group - have bought property in France, Spain and other areas close to the UK; adventurers who are more daring and go further afield; and hot spot investors - financially driven people who want to buy in China and Croatia.