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

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. 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. 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. 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. 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. - 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. 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. ‘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. 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. 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. 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. 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