Overseas property hotspots

We take a look at the most lucrative locations for property investment abroad

Sofia, Bulgaria
The Bulgarian economy is performing well, it's to join the EU shortly, unemployment is falling and property prices are, for us, bargain basement low - all the boxes are ticked for a property hot spot. In central Sofia, for example, a high quality development with concierge, wooden flooring, air conditioning and heating will cost roughly £58,000 for a one-bed apartment and £75,000 for a two-bed. A massive factor for the Bulgarian market is its imminent membership of the EU - it's signed up to the accession treaty and membership will happen in either January 2007, or possibly January 2008 if it's delayed by a year. Lots of multinationals are also opening offices in Sofia, including Microsoft and Price Waterhouse Coopers. Predicted growth of house prices, according to Bulgarian Dreams, is 15 per cent year-on-year for the next four years. Probably best for hard-headed investment purposes, people who are interested in seeing high capital growth in a short space of time.
www.bulgariandreams.com

Warsaw, Poland
Vere Bruce-Gardyne, managing director of Letterstone Agency says, 'With the economy projected to grow at a minimum average of 4.5 per cent per annum over the next five years - the Warsaw area is predicted to be significantly higher - Polish families will have the means to move from their Soviet-era residences to modern contemporary Western style homes'. It is forecast that property prices in central Warsaw will rise 15 per cent next year, fuelled by an increase in the availability of local mortgages and by foreign property speculation. Polish buyers, it is believed, will increasingly look for newer, and bigger houses from which they can commute, replicating Western European markets. And there is a huge influx of migration to Warsaw by Poles and foreigners heading to the capital on business: an estimated 100,000 people are moving to Warsaw each year; the city is expected to double in the next ten years. Typical prices for a one-bed apartment in Warsaw start at £40,000. Again, this would suit buy-to-let.
www.letterstone.com