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E U R O P E
t took a few months for the market
across Europe to recover from the UK’s
surprise EU referendum result. ‘Many
buyers thought twice – but few actually
changed their minds,’ says Hugo
Thistlethwayte, head of International
Residential at Savills. ‘Most
were determined not to let exchange
rates or economic uncertainty get in the
way of a long-held ambition of buying
their dream home.’
Buyers returning to the fray by late
2016 were being encouraged by three
factors. Firstly, sterling rates were
unlikely to return to the highs of early
2016, so provided little incentive to
delay; secondly, borrowing 60 to 70 per
cent on a mortgage in Europe would
be, for sterling buyers, a financial
advantage thanks to the falling pound;
and, finally, buyers letting their homes
across mainland Europe would enjoy
an income boost if tenants paid in
euros, again thanks to exchange rates.
As a result, Europe’s market for
quality homes in prestigious resorts –
and in cities too – has been stronger than many
expected. Interest in resorts has been buoyant,
with Portugal’s Quinta do Lago and Vale do Lobo,
two of a new breed of luxury havens for the
continent, enjoying their best sales years in 2016.
Other traditional destinations that suffered in
the early years of the global downturn have
returned with a vengeance. Much of Spain is ‘back’,
with new-build markets in Ibiza, Mallorca,
Barcelona and Madrid performing more strongly
than for almost a decade, thanks to German and
Scandinavian as well as British interest. Meanwhile
Corfu – still a strikingly British enclave – has seen
high levels of interest, as has Paris, which remains
a firm favourite with European buyers.
‘Watch Berlin too,’ advises
Thistlethwayte. ‘It’s young in outlook,
open-minded and increasingly
international.’ He believes the German
capital, like Barcelona, is benefiting
from an increased interest for city
homes rather than traditional country
properties. ‘Obviously many buy to
enjoy a different culture or a weekend
bolthole, but cities are increasingly
favoured by those many purchasers who
want investment income,’ he says. ‘You
can let a city apartment all year, unlike a
villa which is inevitably seasonal.’
Optimising investment return has
led to subtle changes in old favourites,
too, such as the Iberian Peninsula,
where a plethora of world-class golf
courses extend the letting season well
beyond the summer months, and
Alpine ski resorts such as Verbier that increasingly
offer mid-year festivals and outdoor pursuits that
take advantage of the warm summer weather.
‘Buying overseas is rarely spontaneous. It often
takes years of planning, and Europe now has more
choice than ever before,’ explains Thistlethwayte.
‘That’s another reason why few buyers are deterred
by any political upheaval – they’ve got dreams
they want to realise.’
I
SAINTE CLOTILDE, PARIS, FRANCE
This rare apartment, situated on the 5th and 6th floor of a sought-after address, boasts a large balcony and
lovely views. Bedrooms 6 Bathrooms 6 Price 4,900,000 Contact Nadia Bergman,
INVESTMENT
HOT SPOT
The Algarve is one
of Europe’s largest
holiday markets
with 3.7 million
tourists a year,
creating high
demand for
top-quality homes
for rent. Annual
running costs for
a property can
often be covered
by four to five weeks
of holiday lets
during the peak
summer season
The continent’s old political order may be under challenge, but its luxury property
market is surprisingly resilient, with buyers undeterred in their quest for a unique home
Europe remains strong
E U R O P E
Paris | French Riviera
Provence | Dordogne
Monaco | Courchevel | Geneva
Swiss Alps | Austrian Alps
Marbella | Sotogrande
Ibiza | Algarve | Ireland
London | UK
Tuscany | Venice
Rome | Lake Como
Gibraltar | Greece | Russia
Croatia | Montenegro