International property back on the agenda says Primelocation

The number of searches for international property in November 2009 was double the level of November 2008, signalling that this sector may have turned a corner, according to the latest Primelocation International Search Index.

Primelocation International recorded over one million foreign property searches in November, taking interest back up to pre credit crunch levels. Almost one third of searches were carried out for property in Spain, which has overtaken rival France to become the most popular country after twelve months in second place.

The highest growth since last month was for homes in the USA (47%) and Switzerland (21%), perhaps as disaffected British bankers eye more appealing offshore locations amid the storm over City bonuses. Indeed, several of Europe’s largest hedge funds are considering moving their operations to Switzerland, which may be fuelling interest in property in the country.

The pent up demand for second home and investment purchases is likely to spill over into increased activity and sales next year if an economic recovery causes the pound to rally.

Ann Wright, International Development Manager of Primelocation International, comments: “The USA saw the greatest increase in interest over the last month, possibly as a result of disgruntled City workers considering their options in the recent row over bonuses, regulation and income tax hikes for top earners. Similarly, the heightened interest in Swiss property can arguably be in part attributed to the possible migration of some major European hedge funds, as they seek lower tax environments.

“After a sustained period of rising interest in international property as a whole, I think we can be confident that foreign property purchase is now back on the agenda, in spite of certain barriers such as exchange rates and finance, which may be continuing to stall actual sales.

“The total number of searches is almost on a par with pre credit crunch levels and, as the health of the economy continues to improve and consumer confidence returns, we could see a marked increase in market activity next year and a long term stabilisation of prices.”