Cheap flights boost international property prices
New budget airline routes can have a marked impact on international property prices, says specialist Obelisk International.
According to new research by the organisation new routes can highlight the next property hotspots, provoking increased returns for investors.
One such example of the effect can be seen in Bulgaria where new flights from Easyjet and Ryanair to the country’s ski and beach resorts – launched in January 2007 – have seen both property prices and rental yields increase.
Some 310 million worth of property has been purchased in the country in the first three months of the year.
“The budget airline industry is booming, indicated by Easyjet’s 50 new routes announcement, and projections that the growth is set to continue across the world ensures the viability of the fly-to-let industry,” commented Obelisk International’s investment director, Kevin Prior.
“Knowing exactly where the cheap flights are travelling to is certainly a key element to investment success.”
Further examples can be found at Paphos and Larnaca airports in Cyprus where new Monarch and Ryanair routes have increased investment interest in the country.
Morocco has also received increased interested after announcing the arrival of up to 20 new routes over the next five years.
The number of routes available to a location was one key consideration, along with the cost of the flights and ease of travel to property from the airport, when choosing an investment location, according to Obelisk.
“This further confirms that property investors who are looking to enter the overseas real estate market should be carefully examining the budget airline press pages for strategic property investment planning,” concluded Mr Prior.
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