Page 9 - David Burr Rooftops Magazine Winter 2017/2018

Overseas report by Paul Baxter
Property market
around the Med
remains strong
It’s hard to predict fluctuations in demand and sales beyond seasonal norms. Summer started early around the Mediterranean with high temperatures that
brought with it the seasonal drop in demand whilst buyers concentrated on their holidays.
After a flush of activity in early September, there was a significant drop in new enquiries between the middle of September through to the middle of October. This left many agents with more staff than customers and some started to voice their concerns. However, equally inexplicably, the market changed again and property sales and activity arose and are at a seasonal high. So much so that some properties in the higher price range of 2 to 4 million euro that have been on the books for over two years have found buyers.
The well-publicised drop in holiday
demand for countries affected by excessive migration or hostilities directed at tourists, had led to Spain, France, the Balearics and Italy enjoying a significant increase in demand from holidaymakers and visitors this year in some cases reaching record levels. As a consequence and from a property perspective, property sales in Western Europe have been significantly higher than their Eastern European neighbours, and this has maintained an upward pressure on prices in these areas.
To add further pressure the local government in Mallorca is proposing a two-year moratorium on new residential property planning consents. Which can only put more pressure on the existing housing stock.
This demand also includes hotels,
where trading is at an unprecedented level. As a consequence a significant amount of investment capital has been made available to operators. Customers are demanding better facilities and many of the aging 3 star rated hotels are being sold and then reformed and upgraded to 4 star quality with modern facilities and room prices to match.
Despite the poor value of the pound, buyers are not limited to those already in the Eurozone and Scandinavian countries. We are already seeing an increase in UK buyer viewing appointments. Although it maybe a little early to say, I expect this increased activity to be reflected in completed sales numbers to UK based buyers over the coming months.
As buyer confidence remains strong, today’s prices are expected to see a modest increase in the most sought after locations over the coming year.
Left: This beautiful and elegant Chateau in south west France provides 4 reception rooms, 5 bedrooms each with en- suite bathrooms. Also a fully equipped and spacious kitchen/breakfast room, private chapel. swimming pool and tennis court.
Guide Price: 4,500,000 euro
Below: This stunning historic villa near Tuscany includes frescos and period ceilings, reflecting the grandeur and elegance of the period, dating from the 16th century. The villa provides 4 reception rooms, 7 bedrooms and 4 bathrooms.
Guide Price:
4,500,000 euro
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