Real Estate Investor Magazine South Africa August/September 2019 | Page 50

EUROPE
SPONSORED
International
property hotspots
Where to buy property in Europe
Buying a good investment property abroad is one of the best ways to diversify and
strengthen your wealth portfolio. The trick is to know where to get good value for
money, with a good rate of return. International property specialist and founder of
Hurst & Wills, Lisa Bathurst, gives some tips on European cities to consider.
B
athurst who has recently returned from a trip to Europe
and America, says “I travel regularly, checking on devel-
opers and developments we are interested in, to ensure
they are up to our high standards. Feet, eyes and ears on the
ground are the best way to make sure you are selling good in-
vestments. That is the basis of our business strategy,” she says.
EUROPEAN CITIES TO CONSIDER:
BERLIN,GERMANY
Only last year, Berlin’s housing market was rated as the fastest
price growth market in the world, and the city continues to
enjoy double digit growth year-on-year. “Property prices rose
by 15% in 2018 and yet are still about a third of the price of
property in London,” says Bathurst. “Berlin has a high occupancy
rate of around 98%. It also has a strong population growth of
more than 50,000 people moving to the city annually. These
people are supporting the ongoing demand for housing, and
are important factors behind the rapid growth of real estate
prices in Berlin,” she says.
MANCHESTER,UNITED KINGDOM
“With a projected growth of up to 26% over the next few
years, Manchester is a city on the rise,” says Bathurst. “The
city is buzzing with opportunity, there has been significant
infrastructure growth and a number of big businesses have
relocated their offices there,” she says. “The city boasts the
highest rental yields in the United Kingdom and still has a
substantial undersupply in both the sales and rental market.
Manchester is really living up to its ‘Northern Powerhouse’
reputation,” says Bathurst.
ALGARVE, PORTUGAL
The wave of younger, wealthy people looking to Algarve
for sophisticated living, lifestyle and outdoor sports, have
contributed to a 9.2% price increase last year. “It has become
a chic second-home destination, as well as home to more
than 100,000 resident expats,” says Bathurst. “Developers have
their sights set on this sunny stretch of coast, famous for its
golf courses and resorts, at a more affordable price-point than
other cities in Portugal,” she says.
BIRMINGHAM, UNITED KINGDOM
“In the past year alone, Birmingham has had the largest
property price increase compared to the rest of the UK, with
the average property price rising by a phenomenal 16%,” says
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AUGUST/SEPTEMBER 2019 SA Real Estate Investor Magazine
Bathurst. The city also has an impressive 49% student retention
rate. That, combined with the construction of the UK’s first High
Speed train, means the city is prime for investment, she says.
“The Commonwealth games in 2022 has brought considerable
investment and infrastructure to the city - the fundamentals
of a good investment and big corporate giants like Deutsche
Bank, PwC & HMRC have already relocated to Birmingham.”
PORTO,PORTUGAL
Property across Porto saw a 15.2% price rise in the last year and
the rise is set to continue, says Bathurst. “Portugal has been
identified as one of the best property investment markets
according to CBRE & JLL, and Porto still offers affordability and
that traditional Portuguese charm,” she says.
LONDON - COMMUTER BELT AREAS, UK
Another big signpost for investors looking at opportunities
in the commuter belt is the continued decline of London
property prices and the number of residents moving to more
affordable markets, says Bathurst. “Figures show that house
prices a 40-minute commute away from Central London are
nearly half the price. This makes computer towns like Brack-
nell, Basingstoke, Luton and Slough attractive as they offer
much lower property prices, without compromising on direct
access to the capital,” she says.
“Areas close to Reading, known as the UK’s Silicon Valley,
are now home to some of the most progressive technology
companies, which in turn is attracting an ambitious young
workforce,” she says.
In addition, the much-anticipated high-speed train, HS2,
currently under construction in the UK, she says. This is one
of the most exciting transport projects currently under-way in
the world. “This train will cut the travel time from Manchester
to London to just one hour, essentially making cities like
Birmingham and Manchester commuter cities for London,”
says Bathurst.
“The best advice I can offer when buying property abroad,
especially if you are not familiar with the market, is to consult
with experts,” says Bathurst. “Look for independent property
specialists, like Hurst & Wills, who work for you – the client –
and are not tied to any one developer or development. It is our
business to find the best property to suit your individual needs,
in your budget,” she says
SOURCES Hurst & Wills