According to the National Association of Estate Agents (NAEA) International, residential property purchasers will be looking for less risky investments in 2010 and are leaning, in particular, towards the more stable markets such as France and Italy.
The association believes that the international property market will be hugely dependant on the strength of the sterling. According to the association, property prices will remain stable within the first quarter of the year so purchasers are advised to make a cash offer by March if they want to secure a bargain. The balance of supply and demand will stabilise once house prices pick up and the pound strengthens against the Euro.

Linda Travella, spokesman for Italy at NAEA International, said: “After a slow start to the year, the last quarter of 2009 saw sales and interest returning to the international market, with Italy being considered a safer investment than many other markets around the world. As always, the strength of the pound will have a significant bearing on the quality and quantity of sales and this year it looks to stay at the same strength.

“For the first quarter of 2010 the number of international buyers is expected to remain low and therefore offers are more likely to be accepted making it a very good time to purchase an overseas property. However by late spring, property prices are expected to increase by +3-5%. Key areas to invest in include Tuscany, Le Marche and the Lakes of Maggiore & Garda, where good deals can be found if you buy sensibly.”

Des Rowson, spokesperson for Spain at NAEA International, said:“ Spain has seen a difficult 12 months on the sales front as buyers have been particularly reticent about purchasing during an economic downturn. Bargains are available but remember price reflects position and quality. Unfortunately the coming year will not change too much until we see the pound strengthening and clients accepting that the registered agents do know what purchasers are prepared to pay.

“House prices are expected to increase steadily to around 3% by the first half of the year as the cheaper end of the market dries up. So if you are thinking of purchasing a property, do so in the early part of 2010.”

Keith Baker, vice chairman of NAEA International, said:“Although the global economic downturn has made the last 18 months hard for the global real estate industry, France has benefitted from not having an overpriced market and a system that is more cautious in terms of lending. Having said that, France has not escaped the global crisis and there has of course been a knock-on effect.

"Prices have dropped in most parts of the country over the past 18 months and most owners will certainly consider offers from serious buyers. French property is likely to be the most affordable for many years. Property prices are now at a more reasonable level of affordability and are set to continue stabilising in the coming months.”