THE ADDRESS Magazine Summer 2014 - Page 325

Prices are still falling in Greece, Spain and Portugal, whilst Germany and Japan are listed as undervalued. France and the Netherlands are overvalued, but the rate of price decline is slowing. All figures are based on national average income levels and national average prices, meaning there is plenty of room for a different result within the country itself, from city to city. Another part of the report compares how prices have fallen in prime property markets that are popular as holiday home centres. The Dordogne and Gascony in France, for example, have seen prices fall by 45%, while Marbella, Spain has experienced a 35% decline. Prices have fallen 30% in Praia da Luz, Portugal, Umbria, Italy, and Son Vida in Mallorca. Another spot in Mallorca with falling prices is Andratx, and Evian, on Lake Geneva, both experiencing a 25% decline. Chamonix and Cap d’Antibes in France, Quinta do Lago in Portugal, and Florence have experienced 20% declines in prices. Montreux and Geneva suffered 15% declines while in Zurich, prices are down 4%. However, prices are now on the rise in Florence, Umbria, Gascony and Chamonix, while still falling in Spain. The other locations have stabilized. But while political, economic and financial factors do figure in the purchase of a second home, for many buyers, it comes down primarily to a decision based on lifestyle rather than a return on investment exercise. Strong pound encourages Britons to buy abroad Britons are again buying abroad, spurred by the domestic recovery and rising house prices, low interest rates and favourable exchange rates with the Euro and the U.S. dollar. They are p