Investors that delayed making overseas property purchases
during the recession could now be benefitting from huge discounts in many foreign destinations. This is according to Lloyds TSB International
, which noted that in some markets prices have dropped by as much as 40 per cent.
The firm stated that this fall in prices, coupled with a renewed sense of confidence among investors, means that now is a good time to enter the market.
Indeed, the bank cites recent research which has suggested that home values in some parts of Spain and other European markets have tumbled by around 40 per cent over the past three years and that many property buyers have adopted a 'wait and see' approach.
However, despite this gloomy outlook, new data from the National Federation of Estate Agents in France shows that residential prices in the country actually increased in 2010 for the first time since 2007. Added to this, real estate group IVG2 has claimed that prices in Spain are likely to recover sooner than expected, and faster than the rest of the country's economy.
"Key markets that were overheated in 2007, like parts of Spain and the US, are now buyers' markets with many heavily discounted deals
available," said Barry Luhmann, head of lending at Lloyds TSB International.
- Wednesday 16 March 2011