Homes Abroad-Where to get more bang for your property buck?

December 5, 2011

Given we live in straitened times, we all seek to get more for our money. This is no different in property buying. So, for those in a position to be able to consider an overseas property investment, it might be as well to also consider how currency fluctuations affect the purchasing decision.

Whilst Sterling does not seem to have appreciated against the Euro as much as one might expect, there are still great buys in, and close to, Europe.

Turkey, the “IF” of more affordable property (Istanbul to Fethiye)

For value-for-money outside (partially) of the Eurozone, Turkey has got to top the agenda. At around 2.85 Turkish Lira to the pound, the buying power of the British property buyer has strengthened by around 20% since last year Summer. This makes buying in Turkey even cheaper, which already represents great value-for-money. It is possible to buy a lovely 3 bed villa by the sea for not much more than £100,000, or a 2 bed apartment by the sea for just over £50,000.

Since June 2003, when Turkey liberalized its property market for foreign buyers, over 5000 foreigners have purchased property in Turkey. The property prices in Turkey are still significantly lower than other European destinations. But as Turkey is becoming an increasingly popular place to visit, or buy a holiday home, upward pressure on prices are starting to take hold.

What’s more, a proposed relaxation of rules around non-Turkish nationals buying property, is likely to create a $10 billion property market, spurred by sales to Arabs. Already sales to foreigners reached $2.5bn in 2010, up 40% on 2009.

This means an influx of Arab buyers, from countries such as Saudi Arabia, Syria, Dubai and Qatar, once the legislation is passed, earmarked for 2012. There is already a lot of increased activity among Arab buyers, particularly in Istanbul.

The proposed change in Turkish law would drop reciprocity conditions, whereby only foreign nationals are able to buy property in Turkey, whose host country allows Turkish people to buy in their country.

Poland, Krakow to Warsaw become cheaper

And it is true to say not all countries in Europe are suffering in quite the same way. Polish cities are a great place to look for investment property. Whilst it is in the EU, Poland has not yet adopted the Euro and Sterling has strengthened against its local currency, the Polish Zloty.

It has recovered a lot of ground and is back to over 5 Polish Zloty to the pound, up by more than 25% on say 12-18 months ago. This means property can be 25% or more, cheaper. There is also a strong local market in major cities like Krakow, so there is a more assured exit plan should you need to sell, as the locals are increasingly buying their own apartments and homes.

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Property Venture® is an award-winning, UK-based agency for overseas property who helps people buy investment property and holiday homes in Europe, more easily and safely than they can on their own, because we offer grounded common-sense advice.

The focus is mainly greater Europe: Poland property, UK investments, Spain property, Turkey property, Cyprus property

On the Advisory Board and a Member of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients say

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