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Property investors 'shouldn't rely' on euro

11 February 2008 / by None
Those investing in property in Europe shouldn't rely on the euro gaining value, an expert has advised.

Currency exchange services firm HiFX has pointed out that investors should pay attention to the conditions of the country rather than assuming that the euro will automatically provide profit for them.

The group has noted that the drop in the exchange rate means that property in Spain or France has become more expensive.

Commenting on the issue, Marc Cogliatti, a consultant for HiFX, said: "The other thing to consider is that, yes, sterling-euro has dropped a little lower, but Spanish property prices have dropped off in the last 12 months or so."

He added that the euro appreciating by ten per cent coupled with prices depreciating by ten per cent does not really add up to a significant profit for the investor.

Buying property on the grounds that the exchange rate may move another ten per cent in the investor's favour is a "risky strategy", he warned.

HiFX is a privately owned company founded in 1998 with operations in Europe, North America and Australasia.

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