Internet searches for overseas property hit new high

According to figures from the property website Primelocation.com, internet searches in Britain for overseas property are at a record high, up by 138 per cent compared with this time last year.

The company says that while the number of property searches has fallen from a peak in January this year, it remains very high compared with historic average levels. All countries in the top 10 registered a double-digit annual increase in searches in June, with the USA recording the biggest increase of 192 per cent. Meanwhile, France was up by 64 per cent on last year, Spain by 151 per cent, and Italy by 117 per cent, compared with June 2009.

Despite economic worries in southern Europe and a potential capital gains tax increase, investors seem to be taking a long term view of the market, while hoping, in the short term, to take advantage of the weaker euro. Primelocation.com also revealed that a third of those considering buying overseas property are looking to emigrate permanently. Just under a quarter of those questioned are looking for a holiday home and around 12 per cent are searching for an investment property.

Searches for Spanish property accounted for a third of the overall number of overseas housing internet enquiries. Primelocation.com says that Spain's main attractions are still the warm climate, great beaches and unique culture and that these factors will still draw in international buyers whatever the economic situation.

Property in Spain is currently also the most searched for destination in terms of property listings on aplaceinthesun.com, and a recent report by UK-based holiday homes firm Holiday Lettings showed that Spain still remain the most popular destination among Brits seeking rental accommodation overseas.

Clare Nessling, Conti's operations director, says "Falling property prices, in some cases by up to 50 per cent, and historically low interest rates are making it much more affordable to buy overseas property. On top of this, the falling value of the euro has made property in the eurozone around 10 per cent cheaper to British buyers over recent months."

Conti says that despite some of the negative headlines, Spain has a lot to offer and that it's still one of the countries it receives most enquiries about. Buyers are in a strong position due to the number of homes available, low interest rates, and the opportunity to negotiate price reductions from some very motivated vendors.

"For many people buying property in Spain, it's a lifestyle choice," says Clare Nessling. "They're attracted by the climate, amenities and culture, rather than earning a prospective fortune on their home there. The formula of sun, sea and sangria hasn't changed, in spite of the recession, and if people enjoy what Spain has to offer, property can be snapped up there on better terms than have been seen for years. You can still buy with confidence, if you buy wisely."