RESEARCH from property specialist, Obelisk, reveals how budget airline routes have a profound effect on overseas property investment.
And they may indicate the next investment hotspots.
In Bulgaria a major increase in flights has hiked up property and rental prices.
Reports show that overseas buyers in Bulgaria purchased an estimated €310 million worth of property within the first three months of 2007.
This was three months after Ryanair and EasyJet announced flight schedules to the country's ski and coastal resorts.
Obelisk International’s investment director, Kevin Prior, comments: "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.
“Knowing exactly where the cheap flights are travelling to is certainly a key element to investment success.
"Airline routes are a very important factor when dealing with emerging overseas property markets. On that basis, all Obelisk International’s projects undergo a huge selection and research process, including the assessment of frequent or planned frequency of flights available to service the rental market."
New budget flights by Monarch and Ryanair have prompted huge expansion to Paphos and Larnaca airports in Cyprus and have heightened property investment interest in the country.
Morocco, which has received massive funds for its infrastructure, is due to see 20 new routes on offer within the next five years.
Meanwhile, other areas such as Latin America are also enticing overseas property investors with flights now offered by Thomson Fly.
Mr Prior says: “Obelisk keeps a close eye on the airline operators and the new routes on offer as it can indicate where the new property hotspots are going to emerge and, in general, these markets are up and coming and provide a strong ROI.”
ŠThe Obelisk research team believes that three main factors need to be addressed when looking at prospective destinations in terms of transport: frequency, cost and ease of travel to and from the property.
For more information about Obelisk’s property investment opportunities please call 0808 160 0670 or visit www.obeliskinternational.com.
