Alex Opp.Portugal

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ALEX EVANS (Group Editorial Director - OPP) presentation on the VIVA IN PORTUGAL's conference about the realities of the UK market.

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Alex Opp.Portugal

  1. 1. OPP is the definitive trade platform for the international homes market - with a trade community of over 68,000 agents, IFAs, developers, funds, banks, media owners, and associated service providers. www.opp.org.uk
  2. 2. History of demand in the UK and Ireland Impact of the recession on demand Factors generating increased interest Key buyer profiles and motivations Markets on the UK radar Understanding tomorrow’s buyer www.opp.org.uk
  3. 3. What was UK demand before the recession? OPP/Datamonitor Census (OPP Knowledge) interviewed 4,116 UK and Irish overseas homeowners and 875 UK, Irish and overseas agents in Autumn 2007 Key findings: 2.06m in UK and Ireland owned 1.2m overseas homes 4.35m non-resident Brits owned 2.6m overseas homes Emigration a growing driver (196,000 UK, 17,000 Ireland) Buyers getting younger, driven by investment Over half of purchases (51%) with cash 79% felt property offered best route to capital growth 72% felt property met or exceeded expected returns 85% would recommend that others buy overseas homes www.opp.org.uk
  4. 4. Investment on par with holiday home Desire for new experiences/better quality of life Concerned about making most of savings Nearly 80% bought on inspection trips Barriers to UK buyer Lack of funds Fear of wrong choice Barriers to Irish buyer Rental income from overseas tenants Possible downturn in overseas market www.opp.org.uk
  5. 5. No more ‘amateur’ speculators Serious property investor or holiday home buyer More caution, less equity More ‘streetwise’ on quality and price More realistic on rental and ‘growth’ Return to ‘safe’ markets Need more reassurance about developer Psychological damage Weakness of Sterling Low confidence in developers and off-plan Need more reassurance (title, funding, etc) www.opp.org.uk
  6. 6. - Fear of missing out on best price - Fewer opportunities for growth at home - More developer finance emerging - More sophisticated payment options - Desire to optimise savings/pensions - Big hotel brands coming into market - Multi-generation family tourism - Fewer property media channels - The return of the roadshow? www.opp.org.uk
  7. 7. Very big discounts but if it’s too big, what’s wrong with it? Busy developments communities not ghost towns Less hassle, more flexibility will fractional demand match hype? Confidence in developers will it be completed? Rental income steady yields and good management Pension packages some UK companies selling 30-50% SIPPs Cultural affinity diaspora tourism www.opp.org.uk
  8. 8. ‘Jet to let’ set Seasoned investors looking for bargains overseas BARBies (Buy Abroad Rent in Britain) Pension investments for young professionals Baby boomers Holiday investment – exploring shared ownership Retirement/emigration – low cost of living/high quality of life Inheritance investment – favourable tax and property law Generation Y Aspirational under 30s – next generation buyers www.opp.org.uk
  9. 9. Rightmove Overseas - October top searches: Country % of searches Overall chart position Spain 19.92% 3 France 17.78% 4 USA 10.82% 7 Portugal 6.65% 10 Italy 6.34% 11 Australia 5.12% 12 Cyprus 3.21% 13 New Zealand 3.43% 13 Greece 2.56% 18 Turkey 2.29% 19 Note: Portugal increased its market share by 12% in August and stayed up there www.opp.org.uk
  10. 10. The Move Channel - Sept overall enquiries: Rank Country % Share 1 France 13.74 2 Spain 13.04 3 USA 8.97 4 Portugal 7.51 5 Turkey 5.92 6 Cyprus 4.37 7 Egypt 4.15 8 Italy 3.74 9 Bulgaria 3.20 10 Greece 1.99 Note: TMC carried news on ‘affordable Portugal’ and ‘Silver Coast boom on the horizon’ www.opp.org.uk
  11. 11. Mori poll found that over half of adults in the UK are unhappy with their lifestyles, wanting to move away from consumerism toward more ‘meaningful’ experiences. Opportunity for residential tourism development… What Did You Want For Christmas? 1980 2006 Clothes Time Books Sleep Electricals Holiday Toiletries Rest More Fattening Food Sex More Alcohol Calm and Quiet 2020? Time with family Gardening More short breaks Space Adventure A boat (global warming) www.opp.org.uk
  12. 12. How can OPP help you? - Insights on running a better business - Bringing developers and agents together - Guaranteed response packages Find out more at www.opp.org.uk Email sales@www.opp.org.uk www.opp.org.uk

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