Raising the roofs
As the sub-prime crisis continues, investing in a foreign home this year
might seem risky. But, says Nadia Elghamry, the experts believe there are
still plenty of opportunities. She picks out ten markets to watch in 20083
That end-of-year bonus may be
burning a hole in your pocket,
but where should you invest it?
Despite the word 'recession'
appearing with alarming regularity in
descriptions of the economic climate,
property is still profitable and there are
still some hidden gems out there. Rental
growth is waning, so experts advise
looking for properties where rents will
cover costs while capital growth provides
the bulk of returns.
Marrakech
Morocco
Morocco has avoided most of the
outlandish development seen in
other parts of the Middle East. As a result
development has been more measured and
the market is now picking up the slack from
the Spanish housing market. Commentators
recommend cultural capital Marrakech. A topend
Riad might cost '€400,000 but a
reasonable flat can be picked up for
'€125,000. Unlike other locations the market
offers some prospect for rental growth with
larger hotel chains opening up the capital's
tourist market to a wider audience.
Florida
US
With the sub-prime debacle in full swing, the US might not seem the
most obvious place to invest. But get in now and sit tight and you will beat the
pack ' especially in America's second-home kingdom, Florida. According to the
Florida Association of Realtors, home sales are down 38% and the average price
for a condo is
'€132,000, down 4% on last year.
Mauritius
The Mauritian government recently
passed legislation allowing resortstyle
development and now is an ideal time to
invest for those willing to buy off plan.
Look for properties that are part of the
Integrated Resort Scheme, which enables
overseas residents to buy freehold property
for the first time. There will never be a
shortage of people looking to buy, believes
Nick Barnes at Knight Frank. 'Mauritius has
the added advantage of being a tax haven and
as you can also gain residency it makes it ideal
for people who want to move money around
the world.' A luxury villa on the island's southwest
coast starts at around '€600,000.
Moscow
Russia
Moscow is now approaching prices
paid in top-end London properties,
with an average two-bed apartment costing
around '€700,000 and a luxury apartment
'€2m. However, says Nick Barnes at Knight
Frank's residential research team, there is still
a sizeable slug of domestic demand. 'A lot of
people got very rich, very quickly off oil and
gas and now they are looking to 'lose' some
money. If I had serious money I would invest
there and help them.' However, many
property transactions are still conducted in
cash ' and not all of them legal.
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