British investors and holiday home buyers are still in the market for overseas property, but in lower volumes and with much stricter criteria, reports the property investment specialist Assetz.
The days of high volume sales from speculative investors are over, but there remains solid demand from Brits with spare cash earning little or no interest, looking for a holiday home which will also earn them an income.
Before the global downturn, only approximately 20% of prospective investors would organise a viewing trip to their chosen development, in order to investigate the developer, the local area and the quality of the scheme, however today that figure stands at 80% according to Assetz data.
Buyers are much more cautious and are spending considerable amounts of time carrying out due diligence, researching the credentials of the developer, land ownership, local facilities and rental demand.
Traditional destinations such as France remain popular with holidaymakers and are still attracting significant numbers of British buyers, as are emerging markets which have strong levels of investment and tourism, such as Cape Verde.
Stuart Law, Chief Executive of Assetz, said: “The froth has been taken off the overseas market in recent years as amateur investors were deterred by increased risk and the end of sky high capital gains.
“However, a new leaner market has emerged, as experienced investors and holiday home buyers seeking a solid long-term investment for their spare cash remain attracted to high quality schemes in the best locations."