Savvy Hong Kong and mainland investors are looking at less high-profile parts of the property sector in Europe, as traditional overseas hunting grounds continue to post eye-watering price increases.
Over the past decade there have been no shortage of buyers from Asia looking at property in London and Switzerland. Nevertheless, with prices in the British capital set to increase by 22.7 per cent over the next four years and real estate in Zurich and Geneva at their highest level in nearly 20 years, the cost is prompting searches for homes elsewhere. The emerging middle classes of China and Asia are now casting wider nets to find their second, third or fourth homes in order to find some value.
One place which is benefiting is France, from alpine holiday homes to retreats in rural Gascony. According to global luxury real estate company Knight Frank International, it is the excitement of fine wines and thoroughbreds that are luring investors. Mark Harvey of the overseas desk says: 'There is growing interest for vineyards, equestrian estates and prime residential [property] in Paris.'
Chinese interest in French wine, and fine wine in particular, has been well documented, so going upstream might be considered a sound investment. It also offers a foothold into one of Europe's oldest and most venerated industries.
The Chinese are known for their love of betting and some are seeing equestrian estates as a way of combining two investment classes - namely sizeable landholdings and horse training.
Knight Frank is recording increased interest in estates in Bordeaux and Deauville, while in the capital, the 8th arrondissement, where the French president resides, is an appealing and slightly cheaper alternative to London.
