A drop in euro may boost Spain market
Güncelleme Tarihi:
Hürriyet Daily News
Oluşturulma Tarihi: Şubat 23, 2009 00:00
ISTANBUL - Most economists expect the euro to begin dropping in value this year. If it does, it will make Spain properties even cheaper to British buyers than the latest round of price drops, some down 50 percent from their peak, according to www.write-about-property.com.
This will prompt many Brits to take the plunge and buy their dream holiday home in Spain. And will also lead to many investment purchases.
This will particularly impact the luxury and high-end sectors, as has been seen with the majority of overseas investors brought into the United Kingdon by the low-value of the pound, who are favoring the luxury pads in Mayfair, etc.
This is because super-prime properties, those worth 1 million Ğ in this case Ğ euros or more tend to grow in value quickest during a boom, and will grow in value quickest during the next boom. The recovery will instantaneously restore these properties to their true value. Super-prime properties also give their owners the opportunity to make money during the credit-crunch, because they are some of the most sought after properties in the world, and people can see the opportunity of getting them at a reduced priced.
On top of the drop in prices caused by the credit-crunch, those eyeing a property in Spain can also take advantage of the growing foreclosure market. This currently gives buyers the opportunity to pick up a property at half its valuation price, but if the euro drops later this year that will increase to 75 percent. Though, that will probably be too late at the rate foreclosed properties sell, and will depend on recent foreclosures at the time.
No doubt the other destinations most popular with British holiday makers will also benefit, namely Italy and France, but Turkey and Greece, growing in popularity over the last few years, are also likely to see a massive upturn in sales.
This will particularly impact the luxury and high-end sectors, as has been seen with the majority of overseas investors brought into the United Kingdon by the low-value of the pound, who are favoring the luxury pads in Mayfair, etc.
This is because super-prime properties, those worth 1 million Ğ in this case Ğ euros or more tend to grow in value quickest during a boom, and will grow in value quickest during the next boom. The recovery will instantaneously restore these properties to their true value. Super-prime properties also give their owners the opportunity to make money during the credit-crunch, because they are some of the most sought after properties in the world, and people can see the opportunity of getting them at a reduced priced.
On top of the drop in prices caused by the credit-crunch, those eyeing a property in Spain can also take advantage of the growing foreclosure market. This currently gives buyers the opportunity to pick up a property at half its valuation price, but if the euro drops later this year that will increase to 75 percent. Though, that will probably be too late at the rate foreclosed properties sell, and will depend on recent foreclosures at the time.
No doubt the other destinations most popular with British holiday makers will also benefit, namely Italy and France, but Turkey and Greece, growing in popularity over the last few years, are also likely to see a massive upturn in sales.