Eurozone crisis 'could deter overseas property buyers'
Overseas property investors in the UK could be put off purchasing a home in the eurozone because of the continuing debt crisis in the region, experts have suggested.
According to BuyAssociation, people are undoubtedly going to be influenced to an extent by the stories they see on the news.
Indeed, he said confidence in the eurozone's economy and banks is waning due to ongoing coverage of the financial turmoil.
Paul Collins, editor of BuyAssociation, said this could potentially draw the attention of overseas property buyers to other markets instead, such as the United Arab Emirates (UAE).
He acknowledged that this country was one of the first to be hit by the global financial crisis, with its property market suffering acutely.
However, Mr Collins stated that it is still establishing itself as an industrial and commercial hub for the whole world and is turning itself around.
Therefore, investors may want to arrange a foreign exchange comparison to see how much they would need to pay to take advantage of opportunities in the UAE.
"It was always on the cards that it would start to recover and that things would start to pick up again," Mr Collins commented.
"In recent months, we have seen some big projects restarted that had paused building when the crisis was at its worst."
Mr Collins described this as an indicator that conditions in the UAE market are improving.
He noted that a growing number of companies are choosing to establish themselves in the area, as they believe it is a "great place to do business" with the US, Australia, south-east Asia and Europe.
Mr Collins added that many of the problems that occurred in the UAE's property market happened because investors were only looking at the short-term. However, he stressed that the medium to long-term prospects offered by the country "have always been very good" and still remain so today.