British expats in the Eurozone receiving a UK pension will be celebrating the weakening euro, as life in the Mediterranean sunshine gets that little bit cheaper. For retirees considering a move abroad, here’s a glimpse at three hot spots to consider at your future home…

The current GBP/EUR rate makes a number of locations across Europe more attractive to UK expats, and in particular retirees who transfer a Sterling-based pension or income into euros each month.

In the last seven years, there has been an almost 25 per cent depreciation of the euro, and by association, house prices in Europe. For example, in late 2008 when there was almost parity in the GBP/EUR rate (1.03965, December 2008), a €300,000 property would have cost a British buyer £288,558. Today, with a rate of 1.3376, that same amount would cost a British buyer around £224,280 a saving of almost £65,000.

Specific events in some of the most popular locations with UK retirees are making these destinations even more attractive to overseas buyers. Formerly failing property markets across Europe are still heavily reliant on overseas investment, with a number of initiatives and incentives such as Golden Visas aimed at enticing potential property owners to purchase, so now is a good time to consider investing in European property hotspots.

The South of France
The French economy has not yet recovered from the global recession, helping to keep property prices depressed across the country, especially in areas such as the Auvergne, the Midi-Pyrenees and the Languedoc Roussillon – all becoming more and more popular with UK expats. There are also currently extremely low interest rates in France, which allow French property to be financed cheaply and easily. What’s more, the decrease in house prices means that French sellers have had to be more realistic when pricing property for sale.

“It is genuinely a buyer’s market in France right now,” comments Tamsin Roser, country specialist at FranceBuyingGuide.com.  “Interest in buying in France has already increased considerably this year in comparison with 2014, largely due to recent economic developments, such as the weakening euro and the removal of the cap on the neighbouring Swiss franc at the start of the year.”

To browse properties for sale in the increasingly popular Languedoc Roussillon region, click here.

Portugal – the Algarve
Marina Pasquill, country manager at the PortugalBuyingGuide.com Algarve offices in Vilamoura Marina – and a British expat herself – has seen the property market in Portugal improve throughout 2014 and early 2015, providing opportunities for retirees to bag a bargain.

Says Marina: “Property prices in Portugal are expected to pick up in 2015 for the first time since the global property crisis – yet Algarve prices are still quite low. There have been indicators that it has become easier to access finance for properties in Portugal; lenders are now talking about 80 per cent loan-to-value mortgages for non-residents. All this makes the current conditions in Portugal favourable for property hunters from the UK.”

To browse properties for sale in the Algarve, click here.

Spain – Costa del Sol
Tracey Van Den Berg, country specialist for SpainBuyingGuide.com and resident expat, is based in La Cala de Mijas on the ever-popular Costa del Sol, and has seen the Spanish property market take a positive turn over the past year. A number of different factors have come together in this time to make Spain a more appealing destination for overseas buyers.

“Things are really looking up for Spain’s property industry,” comments Tracy. “Last year brought significant positive movement in the market for the first time since 2008, but prices are still around 45 per cent lower than six years ago. Most Spanish nationals are not in a position to kick start home sales, so when you combine this with sterling’s current strength against the euro, the time is right for UK investors.”

“Spanish banks are lending again and offering selected mortgages for the first time in years, and it is generally presumed that there will be a wider variety of mortgages available later this year. The construction industry in Spain is also recovering after almost completely stalling in recent years, and the number of building permits issued continues to increase, meaning there will still be a good selection of properties available in the country’s most popular regions for some time to come.”

To browse properties for sale in the Costa del Sol, click here.

Find out more
For more information on buying overseas property successfully, download the Overseas Guides Company’s free France Buying Guide, Spain Buying Guide, Portugal Buying Guide – and start receiving free news updates by email.

If you are considering a property purchase in France, Spain, Portugal or anywhere else around the world in 2015, opening a no-obligation account with FCA-authorised Smart Currency Exchange will enable you to benefit from their competitive exchange rates and specialist currency knowledge, ultimately saving you money and time. For more information, download Smart Currency Exchange’s free report or visit the Currency Zone.