Emergence of disciplined real estate investors looking at safe secondary property markets

 
They are looking for quality and a high standard of customer service from developers and real estate agents and the industry needs to step up its game to meet their needs as they look for long term stability rather than making a quick profit.
 
The trend can only be good for the property industry, according to Robin Wilson, head of overseas at Rightmove, who has identified the change.
 
Rightmove Overseas latest report shows that the seasonal slowdown is continuing with searches for property abroad falling 2.3% in October.  But two countries saw a significant increase in interest. Searches for property in Germany increased by 7.45% and interest in Ireland was up 8.11%.
 
The US, Australia, Canada, Switzerland and Austria also saw an increased in interest. Wilson believes this is because they are pretty safe secondary markets with good established infrastructure rather than the classic investment choice or exotic new market destinations.
 
‘It might be too early to call, but we may be seeing the emergence of a new breed of disciplined investors, more interested in long term gains than quick bucks. That kind of buyer will demand a level of quality and service from opportunities that will require developers and agents to really step up their game and that can only be good for the industry,’ said Wilson.
 
‘Lifestyle buyers are beginning to put their feet up for Christmas and bolder investors are increasing their activity with the most popular traditional European destinations taking the brunt of the decline in search activity,’ he explained.
 
‘We expected lifestyle buyers to begin winding down their activity as their thoughts turn to the holiday season, but the increased activity in less obvious destinations could indicate there are investors out there prepared to start dipping their toes in the water again,’ he added.
 
David Kerns, private client dealing manager at Moneycorp, has seen a similar decline in searches for overseas property related transfers, down 13.6% between September and October.
 
‘In addition to a seasonal fall, this could also be due to the fluctuations in October for Sterling against most major currencies. Against the Euro the rate fell from €1.14 at the start of the month to a low of €1.11 before recovering to original levels by the end. The fall in the rate would have made property across most of Europe less attractive for UK buyers,’ he said.
 
‘However there were green shoots in the Rightmove statistics, as they do show an increase in the searches of property in the United States. This could be due to Sterling strengthening against the US Dollar throughout October, rising from $1.57 to $1.60. Fluctuating exchange rates impact on the demand for overseas property and so the importance of discussing these movements with a specialist is of increasing concern for individuals buying property abroad,’ he added.