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Holiday Home Prices Wilt In Euro Drought
pain and Portugal have But soaring temperatures and a
suffered one of their worst strain on the water supply could
droughts on record this have consequences for their
summer, with consequences from rental returns next year, which
empty swimming pools for the many owners rely on to meet their
tourist to economic disaster for overseas mortgage.
farmers losing their crops and
livestock. Many holidaymakers want to rent a
villa with a pool - but the
Roger Munns, Managing Director of attraction soon goes if the pool
Tribune Properties, predicts that is empty. Some golf courses are
property prices in the two having to cut down on watering
European countries could drop as their greens too, and it won't
much as fifteen per cent in some take a big fall in tourism to
areas as more owners decide to mean the difference between
put their villas and apartments breaking even and not being able
on the market. to meet the mortgage commitments
for some overseas property
‘For many owners of second owners.
homes the original motivation to
buy was to have somewhere they This autumn could see more
could spend time in a relaxing properties than usual being put
environment. Coupled with the on the market, with a
thought of a good investment for consequential fall in prices'.
the future, the market for
overseas homes from buyers in the Early warning signs of a
UK, Germany and Scandanavia has potential fall in property prices
really taken off in the last have already been seen on the
twenty five years. Spanish Mediterranean island of
Menorca, which has enjoyed better
rainfall this year than the many properties were being
Spanish mainland and no water reduced in price in August,
restrictions, but some villas traditionally a good month for
being cut in price by over ten sales.
per cent.
We normally see villa and
Water restrictions on the apartment prices being dropped
mainland are having an impact on mid September onwards when the
potential villa buyers, with many tourists and potential buyers are
questioning the value of a thinner on the ground as some
swimming pool when they might not owners are keen to sell and don't
be able to use it. want to wait until the following
Easter before having a real
Portugal has recently asked Spain chance of selling again.'
for 6 million Euros in
compensation, as water levels in The drought isn't the sole cause
the River Douro which runs of property prices falling add
through both countries fell below Tribune Properties, saying it has
limits established in a bilateral accelerated price falls and come
agreement,with Portugal coming on top of an already poor year
close to accusing her neighbour for many estate agents in Europe.
of stealing her water.
Good Time to Buy ‘A good barometer for European
property are the tax havens of
‘For anyone considering buying Monaco and Andorra which don't
a property in Portugal or Spain, rely on ‘tourist' buyers, but
this September and October could usually have a steady supply of
be the ideal time to buy', say buyers interested in taking
Tribune Properties. ‘Unusually advantage of the zero income tax
rate. Andorra is in the Pyrenees
and has no water supply problem - Sea Water
but estate agents were twiddling
their thumbs this summer waiting One possible answer to secure the
for buyers to show - and they long term tourist trade and
didn't. consequential property market is
to follow Malta's example of
Monaco similarly has had no water building desaliniation plants,
supply problems, but has also converting sea water to drinking
seen a lack of buyers. The water, sometimes known as
tourists are still visiting the ‘reverse osmosis'.
Principality and hotels in Monaco
and Monte Carlo have been as busy The Mediterranean island competes
as ever, but again there is a with Portugal and Spain for the
lack of serious property buyers, attention of second home buyers,
and negative property inflation and has a healthy tourist
is quite possible in Monaco this industry - despite having no
year for the first time in a rivers and low rainfall, allowing
decade. the island to function normally
even in drought conditions.
With more property available on
the market we would suggest The water from this source can be
buyers draw up a list of three or used for agriculture and ensuring
four villas they have viewed and adequate reserves to fight forest
liked, and then suggesting to the fires for example - it might just
owners that they would consider be the answer too for the
buying at fifteen per cent below swimming pools and golf courses -
the advertised asking price to and would allow a plentiful
see which ones are prepared to supply of high quality for
consider it.' domestic use.
About the Author:
For details of hotels in Monaco, Monaco's weather, a map of Monaco, the Grand Prix and direct contact details for the Hotel de Paris, Columbus Hotel and others visit http://www.yourmonaco.com For property and real estate in Malta http://www.maltaproperty.info and for property in Andorra http://www.propertyandorra.com
Source: www.isnare.com
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