Where the Brits Bought Abroad: 2007
Posted by Jude Buttle on Tuesday, August 12, 2008
Despite the doubting Thomases, who believed that its property market was on its last legs, Spain finished top of the pile again when it came to where the British investor spent his money abroad in 2007, according to annual research conducted by the Association of International Property Professionals (AIPP).
Photo by buggolo
The Gain in Spain
Spain accounted for more than a quarter (25.4%) of properties purchased overseas in 2007 by British buyers. The figures reinforced the belief that property investors are keeping faith with the more established countries, as France (17%) was again second, with the USA (9.7%) taking the bronze medal.
So, for all the emerging market manifestation, it is the consistent ‘big boys' that are still the main attraction to UK residents hoping to buy on foreign soil.
The sands of time are slowly shifting though, and the rise of the new markets is beginning to challenge the status quo. Bulgaria has been the ‘underdog' trailblazer yet again, pulling a whopping 6% of the British buying market share.
The most noticeable new name in the top ten standing was Morocco (5th place) with 4.9% of the market, very slightly ahead of Dubai at 4.8% (6th). The final emerging market placement was Turkey in 10th position, with 2%.
Sandwiched between those ‘new kids on the block,' filing in 7th to 9th place in the top ten, were Italy (3.7% of the market), then Portugal (3.6%) and Cyprus (2.9%), with all three increasing their market share from 2006.
Out with the Old and in with the New
Both Spain and France, although in the same place of first and second respectively, were down regarding year on year market share from last years stats. Spain had 31.6% of the market in 2006 (down 6.2% in 2007) and France 18.9% (down 1.9% in 2007). Bulgaria is also down from 2006, albeit it slightly (7.7% of market 2006 compared to 6% of last year).
Despite a well documented credit crunch crisis, the USA is up by 2.2% from 2006 to 9.7%, showing that even domestic problems need not affect the real estate demand from overseas purchasers.
Making the Pound Travel Further
Image by carlsilver
On average, British buyers spent £99,200 on overseas property in 2007, according to the AIPP research. That's just an increase of 1% on the average spend in 2006 (£98,166).
The AIPP estimates that the Brits bought approximately 242,000 properties abroad in 2007, an increase of 21% on 2006. With an average spend of £99,200; this calculates out that around £24 billion was spent in the overseas market last year by British buyers.
Hot Data
The Office of National Statistics (ONS) reports that 207,000 Britons left the country in 2006. Unfortunately, more recent data is not yet available, but with many of those Brits likely to take retirement rather than children, it is estimated that between 60,000 and 70,000 overseas properties would be needed to house them all.
The figures collated by the AIPP are for completed property transactions, not for deposits paid and the reliability of their figures may be confirmed in the future by ONS figures, though the data assessed by the AIPP differs considerably and the two are not necessarily inextricably linked.
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