Cheaper destinations draw Irish investors

Irish buyers are eager to buy foreign properties from Croatia to Delhi, Turkey to France - but they are attracted by good returns, not the romance of it all. Kate McMorrow reports on the Homes Overseas Exhibition.

At the Homes Overseas Exhibition at the RDS last weekend, stands offering properties in cheaper destinations such as Croatia, Hungary and Turkey were doing brisk business, proving that Irish buyers are as price-conscious as ever.

Most exhibitors agreed that the market for overseas property here is investor-driven, with buyers willing to release equity in their homes in the expectation of capital return.

This is in contrast to UK overseas shows, where romance is the order of the day and everyone is chasing after rustic farmhouses in rural France and Italy.

One of the busiest stands was that of Bulgarian company Demarko, where one-bedroom apartments at the beach resort of Bugas, priced from €76,000, were attracting a lot of interest. Assurances that the developer was of good reputation helped sales and deposits were trickling in.

Turkish properties were also doing well. At the Nokta stand, US-born Pebble Jackson had sold six three-bed three-bathroom villas in the Bodrum Peninsula which seemed excellent value at €69,000.

Leixlip-based Jale Guitekin and Paul Egan of Med Dreams were also drawing in passers-by, with sea-view apartments in the Alanya and Fethiye areas of southern Turkey as low as €29,500.

Two-beds in Limassol, Cyprus for €90,000 also had plenty of takers at the Antonis Loizou stand. And there was strong interest in Croatia and Hungary, where expectations of future capital growth were encouraging enquiries.

At the Croatia Sun stand, enquiries were mostly investor-driven, with a steady stream of buyers asking about more costly apartments in Dubrovnik.

The surprise hit of last year's show, Shanghai Vision had "sold out" signs on some apartment blocks and prospective buyers were queuing up to place deposits on the next venture.

Up to 20 per cent capital growth was forecast for its Paris Garden apartment complex, where fully-furnished two-bedroom apartments in a good downtown Shanghai location cost from €150,000.

Exhibiting in Dublin for the first time was Italian agency Diamante Immobiliare, whose enticing display of Umbrian farmhouses in varying degrees of repair was attracting interest.

Puzzlingly, most people were asking for brand new properties with letting potential, despite the fact that €220,000 would buy a restored stone house in Assisi and a two-bed apartment in Castiglione cost a modest €115,000.

Representing the Abruzzo region was Properties Around Italy, which was offering run-down historic properties along with a restoration package.

Several stands were offering French properties, including Irish-based Azur Assistance, whose latest leaseback in Fayence had almost sold out. Also here was VEF, an established French property company which recently opened a Dublin office.

On both stands, leaseback properties were strongly in demand, proving once again that the average Irish buyer expects some kind of return for an overseas investment.

French company Immobiliere Du Mortainais was selling properties in South Normandy at very competitive prices, offering the services of local craftsmen for renovation work.

Just one year in operation, Oui Can Do was set up by two Irish bankers and a property consultant who wanted to get out of the rat race. They were advertising a one-stop shop for French property sales, providing tax and legal advice to prospective buyers.

Some far-flung destinations were doing surprisingly well. Apartments in a luxury golf resort near Delhi in India - on sale through Portlaoise agent Damien Lee - were getting plenty of notice. Priced from €92,000, the luxurious 139 sq m (1,500 sq ft) apartments includes life membership of a Greg Norman-designed golf course. Already, a group of potential buyers had signed up for a visit in November. Gavin French was selling units in a new spa resort at Plantation Beach, on the Caribbean island of St Lucia, with prices starting at around €350,000 for two-bedroom apartments. An expected 20 per cent return is based on 50 per cent rental occupancy.

Dubai-based Manchester Real Estate, owned by Sheik Abdul Aziz Lenjawi, was promoting off-plans studios on Dubai Marina: priced from €42,000, they will be ready for occupation by 2006.

Another favourite with buyers was Florida, with villas on a golf resort near Disney at less than €200,000 getting a positive response. South Africa and Malta were slow but hoping for a better attendance on Sunday.

The surprise of this year's show (and perhaps a true indication of the slowdown in sales in Spain) was the comparative emptiness of most Spanish property stands, despite a series of informative seminars arranged by the Spanish Embassy.

Sessions on legal and financial issues and business opportunities were chaired by recognised experts in Spanish property.

An excellent booklet published by professional firm Lexland and the Spanish Institute of Foreign Trade, How to Buy a Home in Spain, was presented to visitors to the exhibition.

While the show got off to a slow start on Saturday, with just a scattering of people braving the downpours to visit the show, punters crowded in on Sunday afternoon and even Spanish property companies were pleased with the weekend's business.