In Portugal, a top ten destination for UK property investment, development and inquiries continue at a steady pace, but British partcipation has slowed since September. The Times reports that British investors and individual buyers are “waiting longer before they take the plunge”. But this has not stopped Portugese development. There are currently 15 projects under construction with several others expected to commence shortly. At the moment, investment in Portuguese property is coming mainly from Russia, the Netherlands and Scandinavia.

Italy has always been a favourite for property investment as well. The country’s new Prime Minister, Silvio Berlusconi, has indicated that he intends to come through on his campaign promise to abolish the country’s main property tax. This would likely improve Italy’s property investment climate. Linda Travella of Italian property agents Casa Travella stated that “When people look to buy abroad they rarely take into consideration such things as Capital Gains Tax and Inheritance Tax”. These can make a big difference in the long-term value of their investement. In Italy, after five years of ownership, the owner would no longer be charged capital gains tax on their property. This makes the country ripe for foreign property investment, she argues.

The trend continues in the Caribbean as well where development projects and investment are continuing steadily. As indicated in the Global Property Guide last month, “The depreciation of the US dollar against major currencies such as the British pound and the euro, has made Caribbean properties more attractive from a European point of view”. Countries that are linked with the US dollar are becoming much more affordable, allowing European buyers to access prime beachfront property at significantly lower rates. While the prices may still be considered high for many, the Guide continues, “Caribbean properties are now considerably cheaper than coastal properties in Mediterranean Europe”.

The global property market is becoming much more affordable in the wake of economic and political change. Whether the UK economy will allow residents to take advantage of these changes remains to be seen.

For the latest news on asset management please contact Nigel Walter chairman of Connaught

This entry was posted on Wednesday, May 28th, 2008 at 5:08 am and is filed under Biz Stuff, Investing In Markets, Real Estate Hall. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.