Low Cost Airlines Drive Property Boom Abroad
When it comes to determining the next boom area in Europe, a good place to look is at the growth areas for low cost airlines. Transport is one of the vital deciders when it comes to cheap property prices. Take a look at the figures if you are not sure!
European market
Buying property across Europe has grown considerably, in recent years. This is down to many factors, including the willingness of the British to make investments abroad, greater need to secure individual pensions and the growth of the European Union. However, one factor that is often overlooked, but is fundamental to the growth of the property market, is the increase in the number of destinations served by low cost airlines.
For example, Bergerac Airport opened to the low cost airlines in 2001; since then, property prices in the area surrounding the airport have risen by 157 percent. This is no coincidence, as Londoners realise that they can get to their sunny retreat in less time than it takes to escape the M25 traffic, so a home in the sun becomes more appealing. Montpellier, too, benefited from the cheap Ryanair flights on offer and property prices here have risen by 144 percent, since 2001. Although St Etienne is just as attractive a location, it does not benefit from a low cost airport, has only seen price rises of 44 percent, in the last five years.
With improved links comes an improved market for holidaymakers taking last minute cheap flights out to these areas and, therefore, fuelling the holiday let market.
For this reason, finding a bargain close to an established route can be very difficult, but by closely monitoring new or up and coming airports, a property investor can be sure to make a wise choice. When analysing the next move for the low cost airlines, one thing that is important to bear in mind is that new routes are often advertised with incredible vigour but some never really take off and those that do may disappear, if they later prove to be unviable economically. Therefore, it is always wise to select a region that will benefit from an airport, but is not entirely cut off in its absence.
Passenger numbers rising
The market for cheap airlines is continuing to rise sharply. Last year 420 million passengers took flights throughout Europe, 40 percent higher than the figure five years ago. This shows that the Brits are becoming more inclined to hop away for a short break and to explore Europe. Bearing this in mind, it is worth realising that these low cost airlines will play a vital role in the European property market. One traveller stated: ‘I’ve been to places I’ve never even heard of just because it’s so cheap’, and this summarises the opportunities for investors throughout Europe.
Not only is the holiday market reaching an all time high, but there is also the new breed of Euro-commuter. These are individuals who have decided that they would rather fly off to a peaceful location at the weekend and escape the hustle and bustle of the city. For example, a return flight to Gothenburg from London can be purchased for less than £50 and takes less than three hours door to door. A return train ticket from London to Swansea in South Wales will cost you at least £55 return and will take longer than 3 hours.
It is easy to see why the Euro-commuter has decided on this way of life!
Ryanair, one of the leading ‘no frills’, low cost carriers, believes that they have struck gold with this formula stating: ‘We have 220 routes in 19 countries and if a route is not performing we will drop it, although it rarely happens. In the coming months airlines will collapse or consolidate, but we are definitely staying’.
Anyone looking to buy abroad should most certainly consider the plans of the low cost airlines. But, exercise caution; as with many of the cheap airline routes, it can be a case of easy come, easy go!
For details on low cost airlines and the property market take a look at:
www.ryanair.com/
www.thebigproject.co.uk/budget/
www.flybe.com
www.easyjet.com
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