Property Overseas: Where's Hot, Where's Not, Where's Next

This time last year, we didn't even know what a credit crunch was. Now, the term laces every property conversation, along with widespread apprehension over just how far its insidious tentacles will stretch. But the year began optimistically, with the European Union's two newest members, Bulgaria and Romania, expecting to enjoy the boom that this seal of approval brings. As it has turned out, prices for off-plan properties in Bulgaria haven't soared as expected, says Robin Barrasford, of Barrasford and Bird. Currently, they remain stable. However, the resale market is seeing bigger leaps in value, with demand for resale properties up 70 per cent on last year and sellers making profits of about 45 per cent.

"EU membership has brought about a measure of confidence and stability that had been absent from the Bulgarian market before 2007," says Mr Barrasford. He sees greatest potential in the ski resort of Pamporovo, which benefits from proximity to Greece by a new highway.

Romania has also prospered. Bucharest, the capital, saw city-centre prices rising by 27 per cent to an average Ј1,300 per square metre in the first six months of this year, buoyed up by strong local demand and new interest from foreign speculators. "Joining the EU means foreign investors now have confidence to enter the Romanian market," says Alex Pintea, from Anglo-Romanian Property. "But in Bucharest, increases in value of new apartments have ranged from 7 to 65 per cent, so it's important to find an agent who can identify the really high growth schemes in the best locations."

For eastern Europe, in general, it has been a good year, with fast-growing economies, increasingly wealthy populations, more accessible finance and demand for better-quality accommodation all combining to fuel local property booms.

One place largely overlooked until recently is Cape Verde, the West African islands an hour's flight from the Canaries. It has responded quickly to demand from investors and relocating Brits with more direct flights, new international airports and mortgage products. Prices are up 20 per cent this year, with the same expected of 2008. The quality of the properties is improving but the islands still offer great value for money.
For those looking ahead, Cyprus - which, along with Malta, adopts the euro next month - has good growth potential. When Slovenia adopted the currency last January, it saw demand for property rise by 300 per cent. Cyprus hopes for something similar, with prices predicted to rise by 35 per cent in 2008. Or get ahead of the pack and look to Slovakia, which is set to ditch its korunas for the euro in January 2009. simplibulgaria.com