Brits continue to flock abroad
THE demand for overseas properties looks set to show little respite with over 6m Britons looking to purchase homes abroad.
Research by Mintel found rising levels of disposable income, the growth of low-cost airlines and the proliferation of television programmes focusing on living abroad was driving demand.
Spain is still the most popular destination and the value of new homes purchased is set to nearly double from £12bn today to £21bn in 2009.
As a nation we own over 1m second homes, of which 550,000 are overseas. In the past 12 months, Brits have purchased 75,000 Spanish properties at an average cost of £160,000. It is estimated that in 2009 that figure will grow to nearly 100,000 homes a year.
Jack Hamilton, managing director of Parador Properties, said: 'The market has been fuelled by an increase in disposable income, and equity in our homes.
'Personal disposable income has risen by 20% since 1998, and with house prices over the same period rocketing, people have more cash to spend on luxuries and investment purchases.'
The report added that gripes with education, crime, pollution, terrorism and long working hours in the UK was also fuelling demand to move overseas.
Other overseas property markets which are likely to see growth include Florida, France, Portugal and Cyprus. However, countries touted as growth destinations, such as Bulgaria and Croatia, aren‘t likely to see significant growth because of a lack of infrastructure.
Those aged between 45 and 54 are most likely to be interested in purchasing an overseas property, according to the report, with the majority of these likely to be within the ABC1 category band.
Increasing numbers of people are funding overseas home purchases by releasing equity in their homes. Hamilton said: 'Owning a property abroad is no longer for the well off, it is an achievable goal for many people.'
Mintel head of consultancy Helen Osman said: 'Although growth is likely to drop off from its current level, it is still expected to be strong over the next five years.'
