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Bulgaria, America, Cyprus and France are 'hot' but Spain feels the chill wind of decline in property prices

Dec 14 2006

Rin Simpson, Western Mail

BULGARIA, Cyprus, Central Portugal, America and France have been named as the top property hotspots for investors looking to buy abroad in 2007.

But the UK's favourite sunny destination, Spain, has fallen from grace and should be avoided, according to the experts.

The predications come from currency company FC Exchange, which provides currency at commercial rates for people moving abroad.

Director Nick Fullerton said, "We have based our 2007 predictions on our industry expertise and experience of spotting and interpreting patterns and trends.

"The countries FC Exchange have cited as hot spots are the ones where buyers are most likely to see good returns for their money.

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"We have taken into consideration individual economies - the strength of each currency and the supply and demand that is already present in each market, which always affects prices and availability."

According to FC Exchange Bulgaria is attracting shrewd investors because of its current low prices compared to the rest of Europe, while the property market throughout Cyprus is one of the fastest growing in the European Union with some areas seeing annual increases averaging 20%.

In Portugal the market has been strengthened over the last few months, France remains a favourite because of its proximity to the UK, while America is favourable at the moment because the exchange rate is so good.

But Spain, which has been a favourite of British buyers for years, is rapidly losing its appeal as the new Spanish Government has begun investigations into bogus planning permissions. As a result a number of new build blocks are being ripped down with little or no compensation for the owners.

Mr Fullerton said, "A lot of owners are now trying to sell their property while it is still standing, which is proving more difficult as the demand decreases."

The number one top tip for buying abroad

Nick Fullerton, director from FC Exchange says,

"When investing anywhere buyers should look out for small independent restaurants, cafes, shops and even estate agents in the local area. These all indicate the arrival of new and affluent locals.

"But be wary of large chain restaurants and stores as these normally indicate that an area has completed its boom period and the investment is unlikely to increase in value."