How much have Brits spent on property overseas? Article Published: 16:32 27/02/2006 Article Classification: Dubai Ocean Heights
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A new report from the Office for National Statistics claims that spending on overseas property has risen by 45% - to £23 billion of property - in 2004 owned by 257,000 Britons (a massive 72% of these buyers are from England).

Spain and France, the traditional favourites, accounted for 27% and 20% of all second homes respectively. While the Spanish Ministry of Tourism predicts that 1 million foreign buyers will buy a second home in Spain in the next 6 years, prices have already soared. This rise in prices has made it more difficult for locals to buy in some places, which is affecting resale. On the Costa del Sol, for example, it is becoming increasing difficult for investor buyers to sell off plan projects and restrictions on selling below the market value could severely depress the market.

France continues to do well, with Paris highlighted as the best investment destination in a recent report from PricewaterhouseCoopers on emerging trends. Olive Tree's Managing Director Richard Brady says that "France appears to be more of a lifestyle choice for our clients. Other parts of the world like Bulgaria and Dubai appeal more to the investor. Clients buying in France almost seem to view capital growth as an added bonus..".

The report also indicates that, between 2003-4, over a third of all homes owned abroad were outside Europe (with 154,000 in the US). The relentless PR around Dubai in the last year has been very successful, with a lot of interest in its projects from a range of buyers. This has generated fierce competition within the UAE itself, as Oman, Ras al Khaimah and Kuwait vie to be the new Dubai.

A recent report from HIFX also showed that Australia and New Zealand, which have long been popular second home or emigration targets, are still attracting UK buyers. According to the currency specialist's latest Global Property Index, based on data from internal enquiries, Australia leapt from one sixteenth to just under a fifth of all enquiries (a 12% increase on last month). Mirroring the UK market in many respects, Australia's property boom has cooled but a number of areas, and its major cities, are starting to pick up - with good investment properties around the Central Business Districts.

The so-called BRIC nations are also luring more buyers. This includes Brazil, Russia, India and China - all of which promise high short term growth as their enormous economies continue to mature. However, Beijing and Shanghai are already cooling from an investor frenzy last year following government measures to curb speculation. Brady says "China has an enormous demand for decent quality housing for the locals wanting to move from the countryside into the city. Their ability to pay the rent however is another question. Incomes are low, therefore rental yeilds will not be high. The consequence of this is that developers are building more and more for the large influx of expats. I have a concern in this sector about over supply in certain areas, especially Shanghai". Richard Brady lived in Shanghai for almost two years and saw the extent of development there first hand.

The new accession states, and those still negotiating EU membership, from Eastern Europe are pulling in more and more buyers looking for weekend retreats and investment homes. As transport infrastructure improves, and more carriers offer flights to Bulgaria, Croatia and Czech Republic, these areas will see a rise in both tourism from the UK as well as buyer interest.