After years of United Kingdom buyers being thoroughly taken by their own domestic property market, recent figures have shown that the allure of international investment has returned.
According to the Knight Frank Global House Price Index, Europe is at the forefront of the market in terms of price growth, with Africa recording a respectable growth rate of 2.6 percent.
With the potential to become a daunting minefield of opportunities and decisions, Ray Withers, Chief Executive and co-fournder of property investment specialists Property Frontiers, offered his expert opinion and advice on the current international property market.
What has kept U.K. investors focussed on domestic property for the last few years?
To begin with there was an element of fear due to the perceived risk in the wake of the financial crisis. It’s not that international property became more risky per se, but that people’s attitudes towards the risk changed. On top of that, people had a booming opportunity on their doorstep within the U.K. buy-to-let market.
How has the global market changed to start attracting U.K. buyers back to international property?
Again, the change that reports are suggesting is mainly about investor attitude. Good international opportunities never actually went away; it’s just that people feel confident enough now in their own finances and the global outlook to start investing abroad once more.
With interest in international property investment on the rise, what impact could this have on the U.K. market?
I don’t think there will be any impact on the U.K. market. It is not an either or case for most investors and even if it were, the numbers are not large enough to have a significant effect on the juggernaut that is the U.K. property market.
Where in the world is generating the most excitement and where should U.K. investors be looking?
This is a heavily weighted question with where to invest depending greatly on the buyer, what they want and where they feel comfortable. There are several ‘safe’ locations, Germany for example, and also more speculative opportunities throughout Southern Europe. For those with the appetite, there are of course excellent opportunities in the emerging markets, especially regions in Africa that are now booming.
Is this positive growth in the global market sustainable or will U.K. buyers eventually return home?
Property markets move in cycles. What is a great time to invest in one market may not be a good time in another. However if we have learnt anything from history, it is that market movements will present myriad opportunities in the future. At some point the U.K. market will slow, but will then quicken again; it’s all about the right place at the right time. With global coverage it is our job to spot the markets when opportunity presents itself.
The U.K. is still part of this exciting new world of property investment and there are some excellent buy-to-let opportunities on home soil right now. It’s just that they are no longer the only ones to pique the global investment community’s interest.
