‘Reality bites in out-of-favour markets, but bargain hunting keeps Spain alive’

Highlights

•  45% of indexed locations saw increases, 37% decreases, 18% no changes
• Spain builds market share up to 21% of overseas searches on Rightmove, up 9.6% on last month
• Half of the top 10 highest climbing search areas are from Spain with buyers drawn to the scent of bargains
• Turkey market share also up 13%, breaking into the top 10 countries this month
• Dubai‘s slide from favour continues with YOY searches  down 60% and a further 20% drop on May

Commentary

As we enter summer season, when home hunters and buyers traditionally holiday and thus spend less time online, overall search volumes are beginning to decline. We’re still seeing a lot of movement within the search charts but it largely reflects transferring interests as focus shifts between markets and flavours of the month.

Robin Wilson, Head of Overseas at Rightmove commented:

“Whilst there some indications of a recovery in the UK market, much of the overseas industry is still reeling from the withdrawal of vast swathes of low level investors and lifestyle buyers.

Frighteningly, we’re still having conversations with new advertisers who believe it’s enough to just put a basic promotion out there and expect to just take reservations.

The brutal facts are, to generate interest and secure reservations, developers and agents have to work their advertising and what precious leads are out there hard."

Commenting on the climbers and fallers in this month’s search chart Wilson said:

"The  shine has really come off Dubai now. The harsh reality of coping with the legal climate, business practices in the Middle East and stories of harsh penalties for ex-pats crossing the line, combined with the collapse in prices fed by over-supply and drying up of buyers in volume are graphic (see chart.)

Compare that to Spain where this month our search data shows that people are piling in to the Costas to uncover bargains and below-market-value sales. Despite facing similar conditions to Dubai of a collapse in prices, buyer volumes and an over-supply of standardised properties, Spain has bucked the market in recent months. We think the key difference is the sense of familiar by staying within the EU and traditional British destinations.

Meanwhile, Turkey seems to doing quite nicely, thank you very much, making hay on exchange rates whilst it remains outside the EU zone. New flights and prices are opening up to Dalaman, Antalya and Bodrum which make it even easier to make your money go further.”

Search Data Highlights (download full PDF report)

Top 10 Climbers and Fallers this month (areas with > 100 searches a day)

Top 10 Trending^* Searches this month (areas with > 100 searches a day)

These are the locations showing the most consistent positive performance in searches on Rightmove Overseas.

*Chart Trend is a rolling average of the three previous monthly changes in chart position

Download the full Rightmoveoverseas Search Report

Editors Notes

This data is complied from searches made by users of www.rightmoveoverseas.co.uk during the period 1^st June to 30^th June 2009. Our website records explicit searches that users make for locations chosen from our map based search, or that are entered into search fields and includes tourist regions we have defined for ease of recognition. This month 48,947 locations received searches.

• % Change Searches is the % change in searches on the previous month
• Chart position is absolute and determined by aggregate search volume for that location i.e. all the explicit searches for the location plus any explicit searches for sub-regions of the location e.g. Searches for ‘France’ include searches for ‘Paris’.
• Monthly Chart Change is the difference in chart position on the previous month.
• Quarterly Chart Change is the difference in chart position from 3 months ago.
• Yearly Chart Change is the difference in chart position from 12 months ago.
• Chart Trend is a rolling average of the three previous monthly changes in chart position.

The data in this report does not constitute specific advice, forecast or recommendation and is for general interest only. Readers must perform their own research and seek independent professional advice before making any decision to purchase or invest in property abroad.

About Rightmove Overseas

Rightmove Overseas is part of Rightmove.co.uk, the UK’s number one property website and advertises properties for sale in over 90 countries around the globe from both agents and owners. On average, Rightmove Overseas receives 80,000 unique visitors a week and generates over 1,000,000 overseas property searches a month for advertisers. Visit us at www.rightmoveoverseas.co.uk.