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Don’t Invest On A Wing And A Prayer, Says Property Frontiers
August 18, 2009Article by Ray Withers
ALGARVE, PORTUGAL – 19 August 2009 – Property investors should make sure their hopes and dreams of a place in the sun are more than a flight of fancy by buying near a large airport, warned international real estate consultants Property Frontiers.
High fliers should look to Algarve property, as property prices in the south of Portugal are holding their own and the sunshine coast is a popular destination for Brits. Budget airlines flying to out of the way airports have fuelled some property booms in the most unlikely places across Europe, but as the recession bites and the airlines find their wings are clipped by fewer passengers, some routes face closure.
This could leave an overseas investment high and dry because attracting lucrative holiday lets often depends on cheap flights and easy access from the airport.“Investors should make sure their investment is in a safe area by paying that little bit extra to be within reasonable driving distance of a capital city or airport hub,” said Property Frontiers director David Cox.
“Buying in a location tucked away from a good travel connection could result in a false economy if the airline closes the route. “Property in Algarve is one of our property hotspots for British expats and second homers and we consider the investment very safe because of Faro’s emergence as a local airport hub.”
The biggest budget airlines that have influenced property investment overseas are Ryanair and EasyJet, who together fly to hundreds of destinations across Europe. Both airlines keep their costs low by flying in to former military airfields or secondary airports, but Ryanair has recently announced a 30% cut in flights to yet to be revealed destinations. Ryanair’s boss Michael O’Leary feels many flights to France are likely to be pulled.
“People who go to a holiday home in the west of France for one weekend in November are hardly going to fill a plane,” he said. British Airways is axing flights from Gatwick to New York, Alicante, Barcelona, Krakow, Madrid, Malta and Palma ‘indefinitely’ from October.
Other winners and losers are expected to be holiday home developments near Malaga, Spain, while Poland is reckoned as a loser due to thousands of workers returning home from Britain no longer winging their way backwards and forwards.
For more information contact Property Frontiers on +44 (0) 1865 202700.