Warmer climes beckon

Real estate developers are trying to create a new Silk Road by luring the Chinese to snap up property in eastern and southern parts of Europe.

Agents in Turkey believe the proposed high-speed rail line that will link the country with China could mean an influx of Chinese people buying properties.

Turkey, which is popular with those from northern Europe seeking second homes, has many seafront properties and the warm climate which will appeal to many Chinese.

Adnan M. Ozcolak, director of Turkish Real Estate, who sells property around Marmaris on Turkey's Mediterranean coast, says: "I think we have a lot in common with China with very similar culture and traditions."

Ozcolak was marketing two-bedroom apartments with a communal pool for 100,000-120,000 euros at the Luxury Properties Showcase at the Ritz-Carlton Hotel in Beijing last month.

"This is the first time we have come to the China market but we do believe there is a lot of potential because of the proposed fast rail link," he says.

"The prices are a lot lower than in centers like London but I believe there are also a lot of commercial opportunities for Chinese investors to become involved in building shopping centers and other commercial developments."

Some are hoping the Chinese might be the answer to the property market on the southern Spanish coast, where prices have collapsed in the wake of the economic crisis and discounts are being offered on schemes of up to 50 percent.

Darren Lilley, managing director of Alamo International, based in Alicante on the Costa Blanca, was marketing property that had been repossessed by banks.

The price of apartments at the Mar Menor resort, only 10 minutes from San Javier airport, starts at just 110,000 euros.

"We have already sold one apartment to a Chinese lady. She already had a number of properties in Europe and this is exactly what she was looking for."

"She was looking for somewhere where her husband could play golf and this comes with two years free membership as well as a free spa for her," he says.

Lilley says the fact the property has been repossessed is a real advantage to potential buyers since the banks which are salvaging the project are offering 90 percent mortgages with rates as low as 1.75 percent.

"Spain has been strongly hit by the economic crisis but it represents a major opportunity, particularly to buyers from countries like China where people are cash-rich," he says.