What are owners’ long term objectives?

For most, a second home is a long term hold. Just 8% of owners intend to sell within the next year, and 12% in the next two to five years. With just 20% of the market potentially available for sale in the next five years, the average owner is likely to hold for around 25 years. In an era of low interest rates and modest capital growth, it is no surprise that the majority (43%) plan to continue letting their property as an income generator.

Where next?

Spain and Portugal are cited as the top destinations for future investment by existing second home owners, followed by France, the US and Italy. The Spanish residential market, now secure in its recovery, is once again attracting attention from second home buyers across Europe and beyond. Portugal, in second place, benefits from a broad demand base and was cited as a top three future investment destination by the Dutch, French, Italians and Spanish, among others.

While these countries came top overall, the majority of owners identified their home market as their first choice for next investment. This reflects a broader focus on income, where local market knowledge and greater ease of management can improve returns.

Spain now ahead of France for Brits

The British are also showing a greater tendency to invest at home, with 37% now citing the UK as their first choice for next purchase, up from 31% when we last asked the question in 2011. In spite of Brexit uncertainty, 52% of British respondents cited another EU country as their top choice for their next investment, slightly up from 2011. Of these, Spain has regained second place from France as the top foreign destination for the British buying abroad.