Overseas property buyers can get an idea of where they are likely to find a good rental market for their holiday home from a new survey that reveals Spain has been the top destination of 2011.
The quarter three Marketplace Report from holiday rentals specialists HomeAway also shows that there has been an increase in the rentals market in Thailand and Dubai.
More British people than ever opted for Spain as their top summer destination. In terms of the number of booking enquiries for breaks in the third quarter of the year Malaga Province and Majorca claimed first and second place, followed by Ibiza in sixth place.
There was also a clear preference towards short haul destinations with nine out of the top ten destinations for summer 2011 holidays being either in the UK, or within a three hour flight distance.
Dubai and Thailand both experienced a considerable growth in property listings. Dubai was the third best performing destination, with a 46% year on year increase in listings. Growth in interest from holidaymakers was also strong. The region saw an 86% year on year increase in booking enquiries during the third quarter of 2011 compared to a year ago.
Thailand aw a 43% year on year increase in listings, which suggests a growing number of Brits are investing in this developing property market. Booking enquiries from holidaymakers also grew by a steady 32%.
Following the UK government’s announcement to end council tax benefits for second home owners, HomeAway asked holiday home owners advertising on its site how this might affect their rental rates. Almost 70% of those surveyed said they didn’t intend to change their rates, however one in ten indicated they may have to increase rates by up to 10% to cover higher costs.
However, despite the difficult economic climate, almost one in five owners is thinking of buying another property in the next three years. The survey showed 80% would use the additional property for short term rentals, which suggests holiday rentals are still seen as a sound investment in uncertain times.
It also found that Christmas is becoming more popular for holiday rentals. Some 11% of people are planning to go away on holiday this Christmas and 46% will opt for a holiday rental versus 31% for a hotel. A cosy cottage or farmhouse with roaring log fire would be the ideal Christmas holiday home for most people (38%), closely followed by a luxurious villa with pool (32%).