International property market continues to perform well

The international property market is continuing to perform well, according to Primelocation International. Its latest International Search Index shows that the number of searches for international property increased by 72% increase in February, compared with February 2009.

Searches reached an all time high in January and much of that momentum has been maintained into February, although activity did slip slightly month on month. However, January was exceptionally strong and February is a short month, so the overall trend is still one of overall growth.

France saw the biggest rise in searches, up by 113% compared with the same period last year, followed by the USA which experienced a 103% increase. Conversely, interest in Turkey and the United Arab Emirates decreased by 27% and 22% respectively.

Primelocation suggests that the Budget will have served to focus the minds of some potential buyers on the financial implications of second home ownership. For example, although the inheritance tax threshold has been frozen for a further four years, top earners are set to be hit by the new 50% rate of income tax from April, and a rise in national insurance contributions will affect everyone earning more than £20,000 a year.

The property website says that the flipside to a heightened awareness of the financial environment is that those who are searching for international property are likely to have considered the issues beforehand and so be more serious about a prospective purchase.

Ann Wright, International Development Manager at Primelocation.com, comments: "Demand for international property is now at a healthy level, having recovered remarkably well through the second half of 2009. Given those impressive gains and the fact that February is a short month, the slight monthly fall registered this month is unlikely to be of longer term significance.

Conti is equally optimistic about the overseas property market. It says that the appetite for property abroad remains strong from those who are retiring abroad, emigrating or investing in the overseas property market, due to the value for money (some significant price reductions being available) and the lifestyle on offer.

Clare Nessling, Conti's operations director, comments: "The weak pound may have reduced many people's budgets for foreign property, but falling property prices, in some cases by up to 50%, are making it a great time to invest in many locations.