Global property doom exaggerated?

The global credit crunch isn't affecting property as much as predicted and one expert is even claiming that talk of an international downturn have been exaggerated.

Various indicators around the world show that interest in property investment is still strong. Investors tend to do their research and don't always look for a quick profit, choosing mid and long range possibilities.

Darren Styles, chief executive of Brooklands Group, organisers of the hugely popular A Place in the Sun exhibitions, says people in the UK are still very interested in buying overseas despite the negative media coverage.

'Much of the negativity about the effect of the credit crunch on the overseas market has been exaggerated. It's a tribute to the strength of our brand and the resilience of the overseas property sector industry,' he said.

Mr Styles revealed that more than 13,000 people visited the recent A Place in the Sun Live show and according to research by the event's affiliated magazine Spain and France are still the two most popular foreign markets among British buyers.

Remi Gashi, mortgage consultant for Savills Private Finance, said there is still huge interest in Spain despite the doom and gloom headlines. 'The days of making easy money may be over, but if property is seen as a long-term investment, the popularity of Spain is likely to continue to guarantee returns for some years into the future,' he said.

Mr Gashi said that negative predictions should not lead property investors to believe that buyers and holidaymakers are losing interest in the country. 'Spain is still one of the biggest destinations for holidaymakers and has a climate that makes people still want to buy there', he remarked.

The Thai market is more resilient than others according to CB Richard Ellis. At a property exhibition last week sales value was 80% up from the previous year. Condominiums in Bangkok and resort destinations like Pattaya were particularly popular.

'One reason is the competitive pricing of property in Thailand. Nationally, construction costs account for a larger portion of the property's overall cost; as a result, the difference between price and replacement cost is lower than in many other markets, making investment safer, even as the global property sector faces a period of uncertainty,' a spokesman said.

In Cape Verde heavy investment in tourism and increased foreign investment in property and infrastructure is helping the market stay strong. 'Investment in Cape Verde is increasing rapidly. Capital growth estimates are currently running above 15% per annum, with higher luxury frontline beach developments reporting increases of up to 20% per annum,' reported Stuart Hill of Property Zone Direct.

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