Budget Airline Routes Linked to Rising Property Prices

The countries - and areas within those countries - served by low-cost airlines are a key indicator of a booming real estate market.

It is a well-known fact that the investor who targets an area before the rest of the herd stands to make the most profits. However, this is not an exact science and reports abound of the latest ‘hotspots’.

However, experts advise that one way of predicting the next boom area for real estate is noting the new routes flown by the budget air carriers. These companies are quick to respond to new passenger demand and extend their services, however they in turn create demand for property by opening up accessibility to new areas. When airlines such as easyJet and Ryanair extended their services to countries in Eastern Europe, it was an early indication that there was to be a boom in that region.

Recent research by Savills (published in an article by ‘The Independent’) showed that prices of property within 10 miles of an airport used by budget airlines are nearly 40% higher than those near to airports serviced by scheduled flights only. Investors may want to watch Morocco, where 20 new routes are due to go in over the next five years.