THE ADDRESS Magazine Summer 2014 | Page 315

all passengers by 2017, an increase from 28.2% in 2012. North America will account for 24% by 2017, down two percentage points from 2012. Europe will be about 23%, down one percentage point. However, the United States will remain the largest single market for domestic passenger flights, accounting for 677.8 million domestic travellers by 2017. With the expected addition of 28.2 million international travellers, the U.S. should also be the largest international passenger market in 2017. Global prime residential recovery moving out of cities to popular holiday destinations Buyers in search of residential properties are likely to turn to areas outside of the major cities of the world in the next five years. Cities were foremost on the radar screens of prime residential property buyers in the past five years but now, quieter spots in the Mediterranean, the Alps, South Africa and the Caribbean appear to be the new hot spots. A report from international real estate advisor Savills says things started to turn around in 2013, with a renewed desire for leisure properties. The climb back will be felt unevenly and the rise will not be meteoric, with the peak years of the early 2000s not reached again until 2019. Some residential retreats will however see price growth of up to 10% this year, with the recovery led by places like the Balearics, Tuscany and the Caribbean where quality is high and supply low. International property buyers are now seeking alternatives to the higher priced cities. Recovery is being driven by three primary factors: the hunt for alternative markets with lower prices, attractive interest rates and the aggressive approach taken by countries such as Portugal, Cyprus and Antigua to attract buyers through the provision of “golden visas”. That perennial favourite, the French Riviera, remains an exclusive and desirable spot for second homes, with the market picking up speed after being hit hard. The market there is being aided by a limited supply and historically low interest rates. Valbonne and Mougins are seeing renewed interest from British buyers as well as from Russia and the Middle East. In nearby Provence, buyers from the United Kingdom are leading the return in interest. Bordeaux vineyards are seen as good business investments by the Chinese and there are signs of interest from that quarter for hotels. Portugal’s golden visa program has piqued the interest of the Chinese who account for 78% of the 318 visas that were issued in 2013. In the Quinta do Lago area, British buyers held sway. Smaller townhouses and apartments are selling well. Spain’s Ibiza has enjoyed a return to pre-peak levels for the best villas while in Mallorca, prices are not r