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Warning on investing in property abroad
 

Courtesy: RTE
 
In a report on population structure in the eurzone published today by NCB Stockbrokers, economist Eunan King sounded a warning to people investing in overseas property.

He said that without similar population demographics to our own, it is unlikely that EU countries from the Accession States will enjoy a boom like Ireland has experienced in recent years.

King said: 'People expect that a lot of the ten Accession countries are going to have the same boom as we has seen in the last ten years. They're probably not going to have that because those countries don't have the same population structure as we have. There isn't the demagraphic influence that Ireland has had which is driving property prices up so dramatically here.'

The report, called European Population Outlook 2020, says that Ireland's population structure is unique in comparison with the rest of Europe - we have a high birth rate, a low number of dependants IE those over 64 and we have proportionately high immigration from the Accession states.

NCB's report says there will be marginal growth in the 15-64 age group in the EU 25 until 2010, but in Ireland the 15-64 age group will rise much more sharply than in any other European country.

Dependency, or those aged over 65 and under 15, is set to be quite stable in the EU for the next four years, then it will rise sharply, but dependency in the Accession countries will be low because of low numbers in the over 65 age group.

The report from NCB also says that proportionately Ireland the biggest number of its immigrants from the Accession countries, and that Ireland, Luxembourg, Cyprus and Portugal are expected to have the biggest immigrant flows per 1,000 population in the years ahead.

 

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