Euro Properties To Fall In 2006

Some areas of Europe popular with second home buyers could seeproperty prices fall by ten per cent or more in the year ahead,according to overseas property specialists Tribune Properties.2005 saw the first signs of a property slow down, and even thereverse of sharp gains in holiday home prices over recent yearsin Spain and Portugal, with owners unable to sell their propertylikely to drop their asking prices in 2006 to secure a sale, andbuyers in their strongest negotiating position since the mid tolate 1980's when prices dropped by nearly a third on the SpanishCostas.Europe's worst drought in living memory had an affect on themarkets in Spain and Portugal earlier this year, with many wouldbe buyers wondering if they would be able to use their pool inyears to come, with consequential rentals possibly tailing off.'Some buyers rely on renting their holiday home out as they takeout a mortgage to buy', says Roger Munns of Tribune Properties,'and if they can't rely on this it creates doubt as to whetherto buy or not. Some buyers were taking the view that they shouldwait to see what happens'.But it isn't just the possibility of more droughts andunreliable rental income that is beginning to see prices drop insome areas, according to Tribune Properties.The emergence of new European markets in the former Eastern Blochas seen British, Dutch, Belgian and German buyers head forcountries li...

...ke Bulgaria where apartments and houses can bebought at a fraction of the price of Spain and Portugal.'Second home buyers are seeing properties offered in Bulgaria atless than half the price they thought they would need to own ahome overseas, and the traditional markets of Spain and Portugalare losing out.Already we have seen villas in Menorca drop in value by aroundten per cent, and they could, and probably will, go lower still.In addition the rate of new builds on the Costa del Sol andCosta Blanca hasn't slowed down to any great degree, and beforelong there could be a price correction as there is going to bequite an oversupply in the market.' European Tax HavensIn contrast to lower prices on the Spanish Costas and Menorca,Tribune forecast that prices on the Algarve and Malta are likelyto stay steady or increase as their domestic markets are strong.The two countries they see in Europe with growth potential for2006 are the tax havens of Andorra and Monaco.Monaco and lesser known Andorra both offer no income tax forresidents, and Andorra has seen double digit property priceinflation for the last two years, with the 2005 figures likelyto match. After a slow start to the year Monaco has seen strongbuying in the last quarter.With the new government in Germany increasing the top rate ofincome tax, Tribune forecast demand continuing through to 2006.'Andorra and Monaco are small coun...

...ntries with little room tobuild new property', says Tribune's Managing Director RogerMunns, 'Despite the German economy being slow for the last fewyears it remains a very important market. The raising of the toplevel of tax will mean more Germans seeking residency in acountry with low tax levels. Andorra and Monaco are the two mostlikely candidates for them to buy in and take residency'.Tribune's advice to potential overseas property buyers is tofind out how long a property has been on the market for, and tomake provisional offers of between five and ten per cent off theasking price on a shortlist of three or four properties as oneowner is likely to accept. Their longstanding advice is toalways employ an independent lawyer to handle any sale anddeposits.###Tribune properties produce a guide for Monaco and Monte Carlo,including the weather, a Monaco map, hotels and the Grand Prixat www.yourmonaco.comFor a guide to Malta, including hotels, holidays, self cateringholiday villas and apartments, a map of Malta, flights, theweather, car hire and details of Malta's main towns of Valletta,St Julian's, Sliema, Mellieha, St Paul's Bay, Qawra and Bugibbavisit www.yourmalta.comFor property in Andorra www.propertyandorra.com , property in Malta www.maltaproperty.info, Menorca property www.menorcaproperty.info and for property and real estate in Monte Carlo and Monaco www.monacoproperty.net