Property dealers in Europe are targeting Gulf investors who stand to cash in as a result of the weak euro against the strong US dollar, which regional currencies including the Bahraini dinar are pegged to.

The euro hit a 12-year low last week, while the dollar has surged on the back of a stronger US economy, said a report in the Gulf Daily News (GDN), our sister publication.

A slight rally from last week means $1 is now worth around €0.94, but multinational investment banking firm Goldman Sachs predicts it will fall to €0.80 per $1 by the end of 2017.

It is good news for Bahraini and Gulf investors looking to purchase property in Europe, with the Bahraini dinar now worth around €2.5, compared to €2 last year.

Among those seeking to cash in on the increased appetite in the Gulf for European property is Briton Vincent Hearne, who is looking for buyers for his French manor house in Aubeterre-sur-Dronne, one of 150 listed villages in France.

"The political situation in the (Gulf) region has resulted in a few people looking out for houses abroad where they can relax in a peaceful countryside," he said.

Hearne's property, which is an hour from Bordeaux, was built in the 1830s and offers spectacular views across the river to the Dordogne.

It is on the market for €1.26 million (around BD504,000/$.3 million), which is approximately how much it would cost for a studio flat in Belgravia, London.

In Bahrain, the same money will buy a four-bedroom villa at Durrat Al Bahrain or a three-storey, nine-bedroom villa in Amwaj Islands.

The property Hearne is selling on the Charente-Dordogne border is fully furnished with six double bedrooms, each with attached bathrooms, two private suites, two acres of land and a swimming pool.

"This house is absolutely sorted and ready to go," said Hearne.

"Aubeterre-sur-Dronne is a small pretty village, which has now become a popular destination for people from different countries.

"If you go to the main square here you could see people from Hong Kong, Dubai, US, UK and Gulf countries.

There are an estimated 40,000 chateaux across France and Abu Dhabi-based Al France Property last year reported sales of €11.5 million to GCC investors in France and Geneva, with UAE nationals accounting for 50 per cent of total sales followed by Kuwaitis and Saudis.

"Following the fluctuation in global real estate markets, there are now major opportunities for Middle East buyers to look at international diversification of their property portfolios," Cluttons international residential markets head Joanna Leverett said.

Cluttons organised a global real estate exhibition yesterday at the InterContinental Regency Bahrain and Leverett said, over the past year, the company recorded strong Middle East investor interest in mature and stable markets as safe havens for funds.

"The benefits of investing internationally can vary from country to country, but one area of interest to many Middle East buyers is citizenship by investment," she said.

Cluttons head of Bahrain Harry Goodson-Wickes anticipated an increase in Gulf nationals investing in second homes in the coming years.

"In the coming years, we expect an increase in the amount of transactions from Middle East investors in second homes and 'buy-to-let' investments."

Bahraini economist and chief executive of Jafcon Consultants Dr Akbar Jaffari agreed that now was a "good time" for people seeking a second property abroad to invest in.

"If you have the money and want to own a house, car or other products abroad, then this is a good time," said Dr Jaffari.

However, he added that as world economies continue to face the aftermath of the global financial crisis, investors might not be able to bank on large returns on their investments. - TradeArabia News Service