The 5 Worst Property Markets In 2011

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22nd December 2011

The 5 Worst Property Markets In 2011

A new report by a specialist overseas property investment company, www.colordarcy.com, reports on the five countries that they believe were the worst to invest in 2011.

Property remains the number one investment choice for financial gain; however, 2011 will not go down in history as one of the more successful years for some property investors! With this in mind, they have compiled a report outlining “The 5 Worst Property Markets To Invest In 2011.”

5. The Czech Republic

In fifth place was the Czech Republic where annual property price increases of between 20 to 30% are a distant memory and now a combination of high prices, oversupply and some of the lowest rental yields in Europe have made this a property investor’s bohemian nightmare.

4. Bulgaria

In fourth place was Bulgaria which was once regarded as the ‘the new Spain’ for overseas investors, not anymore! Property prices are in freefall and with the exit of British and Irish buyers, Russian investors now dominate the market and their strong bargaining skills result in continued falling prices.

3. Greece

In third place was Greece. With a debt to the tune of 340 billion Euros and property prices falling by 10% in the first half of 2011 alone, it is deserving of its podium placing.

2. Cyprus

In second place was Cyprus. A long time favourite with British investors, but now even its biggest advocates are losing interest. A stagnant economy and its vulnerability to the Greek crisis with two of its largest banks exposed to a total of 5 billion Euros doesn’t bode well.

1. Ireland

Finally in first place was Ireland. It seems that ‘the luck of the Irish’ has finally deserted them. Once the envy of the world when the property markets boomed between 2000 and 2006, the sheer scale of their downward spiral becomes apparent when you recognise that apartment prices fuelled by yet another painful 15% fall in 2011 are now down by a massive 60% from their peak.