Dubai is becoming increasingly popular with British property investors looking for some sun.
Currency specialist HIFX’s new Global Property Hot Spots report finds that the Middle Eastern state, along with Bulgaria, is increasingly popular with UK residents looking for a second home.
Since last year the number of Britons buying homes in Dubai has increased 60 per cent, with the number of people buying a property in Bulgaria rising 77 per cent.
Traditional favourites France and Spain are still the most popular places for UK residents to buy second homes in, but interest there is on the wane.
“Although France and Spain remain the most popular destinations to buy abroad, due to their proximity and the cheap price of travel, British citizens are starting to look further afield,” said Alex Wright, director of HIFX.
“Dubai is an attractive location for Brits with the winter sun averaging eight hours a day. Property prices are relatively cheap compared to international standards and rental yields are still high. Dubai has many grand projects to increase its visitor numbers which should sustain rental incomes for investors.”
But, overall, Britons owning property abroad tend to cluster closer to home.
Thirty-five per cent of Brits with homes overseas have a place in Spain and 24 per cent have a property in France.
But interest in buying in Spain has now dropped 26 per cent, HFIX reveals, with the number of Brits asking about France falling 24 per cent.
By contrast, the number of people enquiring about Bulgaria rose eight per cent.
“Bulgaria is booming and the Black Sea resorts are reminiscent of Spain 20 years ago; investors are buying in their droves and there is similar activity in some of the ski resorts,” said HIFX’s Mr Wright.
“Supply is in danger of outstripping demand from a rental perspective so investors should be wary; capital growth is what most speculative investors are chasing at the moment. Traditional areas such as Spain and France are still popular with families looking for a holiday home and retirees who plan to spend the majority of their time abroad but the younger generation are becoming more adventurous.”