Interest in overseas property hots up

Interest in buying property abroad is now at its highest level since April of this year, according to new research from UK-based estate agent Worldwide Property.

In its monthly confidence tracker survey, the company reveals that 72 per cent of people who responded believe that right now is a good time to invest in homes overseas.

The USA, Brazil, the Caribbean and Spain were named as the most popular destinations in which to buy property abroad.

When questioned about interest rates, more than half (54 per cent) of respondents were of the opinion that interest rates will not increase over the next 12 months. If accurate, this would mean that mortgage borrowing rates are likely to remain roughly the same, particularly for those people remortgaging their homes in the UK in order to finance an overseas property purchase.

Commenting on the figures, Kevin Wilkes, managing director of the Worldwide Property Group, said: "Once again we see mounting evidence of people's belief that interest rates will remain low for quite some time. The number of people who feel that rates will increase over the coming year has progressively reduced over the last four months. If this trend is correct this is excellent news for anyone buying a property."

Meanwhile, figures from Conti also show that Spain and the USA are still proving popular as locations for Britons buying homes abroad. The top spot, however, still goes to France, which is top of the list for the second year running. It took a 43 per cent share of mortgage enquiries received this year, an increase of 12 per cent compared with the same period in 2009, and a massive jump of 29 per cent compared with 2008.

In second place is Spain. Despite the doom and gloom, it has defied the odds, claiming an impressive 24 per cent of enquiries, up by two per cent on last year, and by nine per cent since 2008. Turkey, holding on to third position, continues to enjoy a booming market, increasing its share to 18 per cent, an increase of five per cent since last year, and seven per cent over the last two years.

The only other country in Conti's top ten to see a significant increase in enquiries over the last year is the USA, rising from one per cent to five per cent. Florida, where property prices have plummeted over the last couple of years, is particularly popular, with many homes being sold for less than it cost to build them.

Clare Nessling, Conti's operations director, says: "France, Spain and Turkey are dominating the hot spots table and together now account for a staggering 85 per cent of all enquiries received. Investors are focusing on tried and tested locations more than ever before, whilst the flurry of interest we saw in the far-flung emerging markets in 2008 seems to have totally disintegrated."