Brits to invest in European property, finds Zurich

01 February 2005
UK property investors' search for higher rental yields will lead them to the European housing market this year, the Times reports.

Nearly half (44 per cent) of the UK based commercial and residential property investors polled by insurance giant Zurich believe that western Europe will offer the best returns this year and plan to expand their portfolios accordingly.

However, Central Europe was singled out by 29 per cent of respondents as offering the highest potential yields over the coming year.

Countries such as the Czech Republic, Poland and Hungary are becoming increasingly popular as land and tax reforms make their housing markets more attractive places to invest.

According to Richard Elliott, head of property investment at Zurich, more and more investors are looking abroad as UK market conditions tighten

"At the moment it's a trickle but there are many more planning to go abroad," he commented.

"In the UK it's a very hard market with heavy demand for sites, little property available and more investment coming in all the time, which means returns and yields are reducing bit by bit."

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