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(EMAILWIRE.COM, October 10, 2008 ) International - TheMoveChannel.com, the leading international property portal, today publishes a list of tips for spotting the next international property hotspot. Property investors in the current climate have to tread carefully in search of the next emerging hotspot. We look at some simple ways that may make the journey a little less bumpy.
How to Spot a Place thatÂ’s Hot
Until about a year and a half ago, making money in overseas properties was as easy as falling off a log. Property investors couldnÂ’t get their cheque-books out fast enough.
At that point, markets everywhere were thriving, but with the current credit-crunch climate, seasoned investors are now more cautious than ever.
So what chance for the new property investor to select an emerging market? Where do they turn now and what should they be considering when trying to determine if a location is hot or not?
We offer some ‘sound advice’ and guidelines used by the so called experts.
Local Appeal
An interesting indicator of future growth areas are places where wealthy locals go on vacation.
Tourism is the key ‘driver’ for many markets and if the locals holiday there then it’s probably a prime area that will also attract many foreign visitors. This will make it more favourable for any investor who will have national and international tourists in need of accommodation.
The Russians are Coming
Look for resorts that appeal to Russian buyers.
The Russians are snapping up everything in sight and not just billionaires buying in London, but a new ‘business class’ - estimated at about 55 million people.
Many of these Russian investors will be looking for bargain properties outside of their own country, as prices in Russia are some of the most expensive in the world.
Bulgaria, Croatia, Montenegro, and Dubai, all are being heavily invested in by Russian property tycoons, as are Turkey and Egypt. The flashiest Bulgarian beach resort or ski property will cost a fifth of a similar accommodation in Moscow.
Ski, Sea or Inner-city?
Why would people want to visit a country in the first place? Obviously, every country has a capital city, but not all have impressive golf courses, exciting ski slopes and spectacular coast-lines. Choose a location which has wide appeal, for example Bansko in Bulgaria is worth considering as it has golf and ski resorts, therefore offering rental potential all year round. Also, bear in mind that some countries have longer letting or tourism seasons than others.
Risk Taker
Areas with war and political conflict, youÂ’ll not be surprised to know, you should stay well clear of. Any internal unrest will have a detrimental effect on the property market as well as reducing the chances of tourists visiting the region.
Look instead for countries joining the EU or obtaining a single currency, which will encourage tourism and have a more positive long term effect on the economy and general stability.
In the shorter term, cities that are about to host the Olympic Games or other major events benefit from heavy investment, improved infrastructure, an increased tourist profile, and subsequently higher property prices.
It is important to look at the country as a whole, and not just the property market. What state is the local economy in? Is there room for further growth? Is it a popular destination for tourists? Researching a country, region or location as much as possible is vitally important when accessing if an area is worth splashing your cash in.
Collateral Thinking
Consider secondary cities that will benefit from a capital or main city's boom, especially in countries such as Poland, Romania or the United Arab Emirates.
Finally, find somewhere that is currently undervalued, but is earmarked for investment in infrastructure, new airports, motorways or EU grants for developers.
Dan Johnson, Managing Director, comments:
“The important thing is to do as much research as possible and beware of the spin surrounding alleged emerging markets, which may be portrayed that way by developers or property agents who have their own personal agendas to achieve, but don’t always care about you, the investor.”
- ENDS –
Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information as well as images and interview possibilities, please contact:
Dan Johnson
Managing Director
www.TheMoveChannel.com
0207 952 7650
TheMoveChannel.com
Jon Moore
020 7952 7658
j.moore@themovechannel.com 
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