Summer vacation is the perfect time for foreign buyers to scope out the area where they have found a potential property to buy. It is common practice to visit the selected property as the final step before buyer’s seal the deal. Add this to an appetite for summer vacation plans and it is a well-balanced serving of business and pleasure.
The pandemic has made this year’s vacation and investment planning a challenge, with travel restrictions, countries being in different phases of outbreak and a taboo on unnecessary travel. We are seeing that vacationers and property buyers are opening their wallets: to check if their passports have expired and to purchase that must-have vacation property.
At this point, we just don’t know. Even when we do start to see more signs of recovery, the return to normal will be a process.
Sun-seekers and investors alike - don’t despair! Here are some interesting holiday habits and market observations, gleaned from our own experience and other industry experts.
Real estate agents report a wave of inquiries from city-dwellers wanting to relocate. This exodus to rural areas is being noted by agents in western and southern European countries, the US and London, prompting thoughts about the revival of semi-abandoned and struggling villages. It appears that travelers are going a bit ‘wild’ on this front.
Here’s a summary of the places to be - and buy - this summer.
As luxury travelers dip their toes back into post-pandemic travel, domestic inland high-end home and villa vacation rentals are reporting early signs of recovery.
While traditional beach destinations remain in high demand, markets such as Tennessee, Nevada and Montana are also popular. As the financial epicentre of the country and the city with the highest case number of COVID-19 cases, the typical New York buyer may soon shift from urban professionals and families, to investors and foreign buyers.
This is expected to help jumpstart activity in suburban regions such as Connecticut, with its green space and ample square footage. Property developers will play a pivotal role in revving up investor interest in their current and new projects through updated marketing techniques, creative suite design and special offerings for property management services or discounts on tax and maintenance payments.
There is a shimmer of revival in the Canadian real estate and tourism market, with hopes for healthy levels to return near the end of 2020. While summer may be waning by then, investors should keep these locations on their hotspot list.
There is pent-up demand for homes in markets such as: Vancouver, Kamloops and Kelowna in BC and in Ontario, check out Toronto, Ottawa, Kitchener-Waterloo and Hamilton.
Belize’s housing market has been minimally affected by the coronavirus pandemic, making it attractive as both an investment location and a vacation spot. Prices also tend to be lower here, than in more established destinations.
Viewed as a safe place for vacationing and investing, foreign buyers are eager to invest in Australia’s new development properties, and Chinese clients can’t wait for the borders to open. Luxury apartment sales in Australia amounted to $63 million this spring, mostly to overseas buyers.
So far, people have been buying long-distance but when travel restrictions are further lifted, investment and tourism will increase in this country.
The impact of COVID-19 on the housing market across all of Europe differs from country to country, but as lockdown restrictions begin to ease in countries such as Switzerland, Spain, Italy and Austria, for example, agents say that recent demand is higher than before COVID-19 took hold.
Switzerland's attitude to foreign investors, is generally open and favorable in anticipation of the market recovery, despite the existing restrictions for foreign buyers sales.
In Norway, by May 2020, sales transactions were trending upward again. European agents report that Norway is showing signs of stability. It is estimated the market could bounce back to sustainable levels by the end of 2020. There is a rainbow after the storm!
For activity in the UK, we see that buyers remain cautious and are looking at popular districts in Central London. Covid19 restrictions are only starting to ease but we predict that buying will heat up; as London remains an important financial hub.
Turkey is a really interesting case and its sultry summer days are calling to travelers and investors alike. Despite the political situation in the country, it is on track to be one of the top summer destinations for 2020 alongside the traditional countries Italy, Spain, South of France and Portugal.
Antalya is the fastest growing city in Turkey and luxury apartments here are prime locations for sun-seekers and investors looking for long term lets and healthy capital growth prospects.
Both Kalkan & Kas are towns have some of the best views imaginable in the entire Mediterranean and prices in the area are rising by an average of 12% per year. There is a large British presence in Kalkan, whereas Kas tends to attract a more elite and multi-cultural traveler.
But, the rental market is extremely buoyant in Bodrum Peninsula with 40% of the country's domestic tourists basking in the summer sun. Rental properties here are almost guaranteed to be a good investment. Dalaman is one of the few coastal areas which is still relatively undeveloped and unspoiled. The time to buy in this area is now and is rapidly becoming a popular location for European property Investors.
We see that buyers are dialing back on riskier locations and have interest in established, central areas. UK interest in France shows an appetite for ‘Rarity rather than up-and-coming’ properties.
Developers will be rethinking their strategies and consider smaller projects that are in line with buyer and visitor preferences.
If you are dying to know more details about the summer market in France, please check out this article (in French).
In Italy and Spain, which were among the hardest-hit regions in Europe, real estate markets and quarantine measures are just now beginning to reopen. While there are still many unknowns in the short-term, there is confidence among vacationers and buyers alike.
In Spain, real estate professionals believe that after the lockdown, they will close the deals they have been preparing in the last few months, as people start travelling to Spain. Buyers are preparing new investments and anticipate closing better deals, as most of the markets have now felt the effects of the pandemic at a comparable rate. Agents indicate that there was a great increase on the interest for houses with garden and pool. Summer will arrive with a splash!
For comprehensive highlights on the Spanish market this summer, have a look at this article (in Spanish).
Travelers appear to be optimistic about their chances of taking a holiday in Portugal this summer, as there has been a flood of interest from people in European countries. Professionals remain positive and believe that market recovery is imminent. The signs show that the elements are shifting and the floodgates will open soon, with an increase in property prices and continued leads from foreigners who are waiting for the perfect, refreshing, real estate storm of transactions.
Kudos to the Portuguese government's reaction to the Covid19 situation and encouraging safe practices and tourism incentives.
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As in Spain, more and more people are looking to buy bigger houses with pools, away from the city center. People seem to feel safer on the outskirts of cities like Lisbon or Porto.
For more details on the Portuguese real estate summer market, read this article.
The Coronavirus crisis in Singapore has limited travel and investing potential for the time being, but for those who can adopt a wait-and-see attitude, Singapore was ranked the top market for real estate investment in Pricewaterhouse Coopers’s Emerging Trends in Real Estate report for the Asia-Pacific region in 2020.
Due to favorable perceptions of its safety and the Singapore government’s progressive management of the global crisis, the Singapore luxury home market is especially attractive in the coming months. Investment in Singapore by international banks and firms will have a marked positive influence on real estate in Singapore.
You can bank on the fact that there will be a time when travel bans will lift, markets will stabilize and political changes will settle into a sense of normalcy.
So, while you are stuck inside, plan your dream trip or find a hot investment deal. As opportunities and weather forecasts heat up amid our limited pandemic lifestyle, it doesn’t hurt to improve your quality of life and dream a little. Maybe you can have your vacation and take care of business at the same time.
Wouldn’t that be worth waiting for!
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