In Europe, established holiday home markets like the Swiss Alps, southern France, south west England and the Italian regions of Tuscany and Umbria are expected to do best in 2011.
“People are going back to the tried and tested areas,” says James Price, partner at Knight Frank, “I don't get as many calls for emerging markets as we used to get. There are very few speculative investors around.”
“Switzerland has been strong. It is well established, you get a very good, safe, secure and high quality of lifestyle, and they restrict the number of permits for foreign home owners which investors like.”
Interest in the southern French regions of Cote d'Azur and Provence is particularly strong.
“Our French team across the south of France has had record level of viewing, so people are looking again,” says Price.
Activity in Europe's holiday homes market would stay focused on prime areas like the Tuscany, French Riviera and Swiss Alps in 2011, partly because banks preferred lending to cash-rich individuals purchasing in these markets he says.
“We don't expect prices to rocket in any of these places, prices may even go down a little bit more, but we will see more people looking,” he says.
Oversupply problems mean the Spanish and Portuguese holiday home markets remain weak says Price. However, the Spanish island of Ibiza and the Portuguese island of Madeira are attracting overseas buyers.
“Despite the winter season, we are seeing constant demand for Ibiza from all ages funnily enough and such a range of people, not just the young and trendy,” says Camilla Mabbott, marketing director at estate agency, Aylesford International.
The Portuguese island of Madeira, a long time favourite with Britons is attracting buyers from new locations. At the island's completed Palheiro Estate development overlooking the capital, Funchal, buyers from eastern Europe, South America and South Africa are buying apartments and villas.
Across Europe's holiday home locations, developers selling off-plan would continue to struggle Price expects.
“Unless developments are substantially out of the ground they (developers) can wave goodbye to any interest in it,” he says, “People want to be sure that it will be built.”
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