Overseas Property: The lure of direct flights from Ireland encouraged a rush to invest in overseas properties in 2003. Disillusioned by high stamp duty or just carried away by the notion of a place in the sun, more Irish people than ever before splashed out on a second home abroad.
Today's apartment in Alicante is the equivalent of the caravan in Skerries of yesteryear. At least 25 Irish agencies are now selling overseas property, some from their own homes, others with the backing of a large company.
Exotic places were plentiful at October's Homes Overseas Exhibition at the RDS, where people queued to put down deposits on apartments in Shanghai, Thailand and Bulgaria. One couple who bought a €51,000 one-bedroom apartment in Bulgaria weren't even sure where it was on the map. Only one stand, Azur Assistance, was offering Italian properties. A romantic Tuscan ruin surrounded by tall poplars for €250,000 attracted great interest.
A significant trend was the slow-down in Spanish property sales. Around 25,000 Irish people have bought second homes in Spain over the past five years and the market is reaching saturation.
Prices in Spain have risen dramatically and investors are nervous about realising long-term equity on their purchase. It is now virtually impossible to buy anything near a beach on the Costa Del Sol or in Alicante for under €150,000.
West of Esterel, exclusive Sotogrande continued to sell well. Buyers on a budget are looking to the area north of Barcelona, where run-down almond farms from €40,000 are catching the imagination of many.
Bucking the trend, Hot Properties, with offices on Anglesea Road, Ballsbridge, has had a record year on the Costa Del Sol, with €14 million in sales in 2003. "We have noticed more competition from the Canaries, Hungary and France - where people can buy cheaper properties. But this area has a 26-week season, so there will always be interest," says principal Anne Cullen.
The top buying locations this year were the south of France, Cape Town and Budapest, with intensive advertising campaigns paying off in terms of sales.
A key factor was the introduction of direct flights from Dublin to Cape Town, Nice, Girona and Budapest. There was huge interest in the Hungarian capital, so much so that Ranelagh agent Odrun Young moved permanently to Budapest this year.
In the last four months, he has sold 150 apartments here to Irish clients. Rents are low, but good capital appreciation is expected when Hungary joins the EU.
"One client spent €1.25 million on four apartments in Buda. Another paid €2 million for a two-storey car-park which should do very well. Every day has been more active than the last," says Young, who is now looking for a buyer for a restaurant on Andressy, the main avenue in Pest.
City destinations were a new trend. Jackson-Stops sold strongly to Irish investors in Auckland and Montreal, vibrant cities regarded as being at the beginning of the price curve. Hamilton Osborne King had a good year with leaseback properties. While shy about revealing sales figures, director Ronan O'Driscoll agrees 2003 has been a bumper year.
"This is the year the international market matured in Ireland. Buyers now have a clear view of what they're looking for and Ireland is seen abroad as an important market," he says.
The fact that an Irish developer was involved was a comfort factor in the successful launch of 130 apartments in Cape Town by HOK. While investors were in the majority, some bought holiday homes, encouraged by weekly flights from Dublin.
Euro for euro, the value to be had in South Africa is astounding. Equity growth is less certain however and buyers should beware of high expectations in this quarter.
France has two distinct markets: those who buy leaseback apartments and villas with a modest return and Francophiles, looking for a summer home. Interest is traditionally strong in Nice and Perpignan, where there is good access from Ireland. Limerick sisters Karen and Suzanne O'Reilly fly an average of four clients a week to Perpignan in search of a place in the sun.
The greatest demand is for coastal apartments with sea views; the average budget €130,000. Inland, spa villages like Vernet-les-Bains offer good year-round letting potential and ski resorts are within easy reach.
Portugal continued to attract people looking for holiday homes, with €200,000 the average budget, according to Irish-based company Aquarius. Privately-run locations Villamoura, Val do Lobo and Quinta do Lago were the most popular choices.
