Has France finished Spain's real estate reign?

Published 27th Sep 2011

France has replaced Spain as the most popular destination for second home buyers, say several new reports. Research by Savills shows that France is the favourite for second home owners, despite Spain’s continued dominance of TheMoveChannel.com’s Top of the Props this month. Has France finished Spain’s reign for good?

Savills suggests that it has. The country's limited house price decline gives the impression of a more stable property market, which makes it a safe bet for most buyers. "The traditional prime property hotspots, which attract wealthy lifestyle buyers, have been more resilient to the downturn," says the report. "They include selected areas of southern France, the Alps, Portugal's Algarve region, and high-end locations in Spanish islands such as Mallorca."

France has also been championed by Conti. The overseas mortgage company’s recent report saw French property attract 39 per cent of all enquiries. But once again, Spain is in a close second.

Accounting for almost a third of enquiries, the popularity of Spanish property rose 7 per cent from last year, as Conti heralded the country’s “defiant comeback” against France’s first place.

Spain has also been a long-standing leader of TheMoveChannel.com’s Top of the Props report. Repeatedly topping the rankings, Spain received 13.3 per cent of the overseas property portal’s enquiries in August, with France left in second on 11.5 per cent. Could Spain slip down a spot next month?

Director Dan Johnson comments: “France and Spain have long been battling it out at the top of the market. Both are highly desirable places to live, but overall, they have two rather different buyer profiles. The Spanish Costas have always had mass-market appeal among British holidaymakers and overseas property buyers alike, while the large stocks of cut-price distressed and repossessed properties now make it an ideal market for those with an eye for a bargain. France has been a relatively stable economy over the past decade and is well-suited to those looking for a safe, secure, easily accessible investment that will generate steady returns and provide a high quality of life and memorable holidays.”

UK buyers attracted to the French lifestyle continue to invest in the country’s stable economy, but the dramatically reduced cost of Spanish homes is driving interest from those focused on finding a good deal.

Indeed, for those seeking to rent a holiday home, Spain is the first port of call, says Savills, suggesting the country's property can still draw in the crowds. As Spain reports a record month for tourism in August, can distressed property win property buyers back to Spain? France reigns over real estate for now, but this property race isn’t over yet.

Source: ' TMC '

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