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Emerging EU markets attract 'different type of buyer'
27 Jul 2007
Investors in European property are divided over whether to sink their money into established markets such as those in Spain or Italy, or take more of a risk for potentially larger gains by focusing on an emerging market.
But according to Rupert Fawcett, head of the Italian desk at independent property consultancy Knight Frank, the way the decision swings depends on the buyer themselves rather than market forces, as upcoming regions attract a "different type of buyer" than traditional markets.
"There is a very real difference between well-established markets and the new and upcoming markets," he said.
"France will always be popular. Italy and Tuscany will always be popular. It's a different type of buyer I think who looks at the emerging markets."
Mr Fawcett said that, while properties in emerging regions such as Bulgaria have added competition to the market, he does not think established areas of investment "have lost out at all".
Suggesting that the "jury is still out" on the future performance of emerging markets, he added that property in those areas is typically at the lower end of the market as most are "new-build, buy-to-let, that kind of thing" which may not appeal to some investors.
