Prices are still falling in Greece, Spain and
Portugal, whilst Germany and Japan are listed
as undervalued. France and the Netherlands
are overvalued, but the rate of price decline
is slowing.
All figures are based on national average
income levels and national average prices,
meaning there is plenty of room for a different
result within the country itself, from
city to city.
Another part of the report compares how
prices have fallen in prime property markets
that are popular as holiday home centres. The
Dordogne and Gascony in France, for example,
have seen prices fall by 45%, while Marbella,
Spain has experienced a 35% decline. Prices
have fallen 30% in Praia da Luz, Portugal,
Umbria, Italy, and Son Vida in Mallorca.
Another spot in Mallorca with falling prices
is Andratx, and Evian, on Lake Geneva, both
experiencing a 25% decline. Chamonix and
Cap d’Antibes in France, Quinta do Lago in
Portugal, and Florence have experienced
20% declines in prices. Montreux and Geneva
suffered 15% declines while in Zurich, prices
are down 4%. However, prices are now on
the rise in Florence, Umbria, Gascony and
Chamonix, while still falling in Spain. The other
locations have stabilized.
But while political, economic and financial
factors do figure in the purchase of a second
home, for many buyers, it comes down
primarily to a decision based on lifestyle rather
than a return on investment exercise.
Strong pound encourages
Britons to buy abroad
Britons are again buying abroad, spurred by
the domestic recovery and rising house prices,
low interest rates and favourable exchange
rates with the Euro and the U.S. dollar. They are
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