Non-euro countries tipped as best property buys for 2011

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Best property buys for 2011

The UK, Brazil, Turkey and Morocco are being tipped as safe and high yielding prospects for property investment in 2011.

As traditional locations like Spain, Italy and Greece continue to feel the harsh effects of the economic downturn it is mostly non-Eurozone countries that are likely to attract attention with Britain looking good because of falling prices.

‘Familiarity with the domestic market and buying procedures should make many British buyers, especially first time buyers, confident about investing at home in 2011’ said Steve Worboys, managing director of Experience International.

Property prices have indeed fallen quite considerably in some parts of the UK but in others they have remained stable such as Edinburgh and have increased in London. Alternative asset classes such as hotel rooms in these city centre locations could prove the most lucrative investments in 2011. London’s hotel market leads the way in Europe with an 8.5% growth in revPAR (revenue per available room) recorded in the second quarter of 2010 according to Deloitte’s Hotel Market Outlook report.

With the election of Dilma Rousseff in Brazil, President Lula da Silva’s chosen successor, optimism remains high for the country’s real estate market. Leading holiday rental site, HomeAway.co.uk, reported a 71% increase in booking enquiries for Brazil during the second quarter of 2010 and a number of new residential developments such as Tambaba Country Club Resort in Paraiba and Caponga Beach Village near Fortaleza are starting construction in order to meet buyer demands.

Further south, Brazil’s second city, Rio de Janeiro, is tipped as a property hotspot in 2011. The R$8 billion regeneration project known as Morar Carioca will see vast improvements in infrastructure and modernisation of housing by 2020 in the metropolitan regions of the city including Copacabana, Leblon and Maracanã. In addition the R$ 34 billion bullet train connecting Sao Paulo to Rio has been given the green light with the contractor expected to be announced shortly.

The discovery of the Libra oil field just off the coast of Rio also spells good news for investors as up to 15 billion barrels of oil could be extracted making Brazil’s one of the world’s top 10 oil producers.

Worboys is also tipping Istanbul as a 2011 hotspot. ‘From an investment perspective, the economic powerhouse of Turkey, Istanbul, remains the best bet for 2011 with the city where east meets west presenting a rare window of real estate opportunity where demand vastly exceeds supply with over 250,000 housing units required each year,’ he said.

One of the fastest growing cities in the world, the population of Istanbul is set to reach 15 million by 2023 placing massive pressure on existing housing stocks. Modern, western style homes in the burgeoning suburbs such as Beylikdüzü on the European side of the city are attracting a lot of interest.

Morocco is also being mentioned as one to watch for 2011. The North African nation has seen a resurgence in visitor interest over the last 12 months with HomeAway.co.uk recording a 55% increase in booking enquiries this year with average weekly rates for two and three bedroom properties at £452 and £746, respectively.

Some 10 million tourists are set to visit Morocco in 2010, up 14% on 2009. Tourism revenues of 56 million Dirhams are expected with the sector accounting for 10% of GDP that is forecast to increase by 4.5% by the end of 2010.

With British Airways announcing new thrice-weekly flights from London Gatwick to Marrakech and the new Mandarin Oriental opening in 2011, interest is expected to increase.

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