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

Algarve, Portugal
A lower risk investment, suitable for someone who wants to use their investment as a lifestyle choice, for personal enjoyment, (holidays, weekends away), and make some money if they choose to sell in years to come. Algarve is a slow burner, steadily growing in capital appreciation, explains Nick Freeston, international manager at Chesterton. 'There will always be steady growth, and you won't see the boom and bust of Spain, for example. The planning is on the sensible side, not too stringent and not too relaxed.' A reasonable two-bed apartment in the Algarve will start at £200,000 - for £350,000 you can buy a villa. He adds that there are a number of high-quality developments are set to come on the market which will increase interest in the area further.
www.chesterton.co.uk

Cape Verde
Cape Verde, off the west coast of Africa, has a similar climate to the Caribbean, but it's not so far away from the UK. There are plans for a new international airport, due to be completed next November, which will mean direct flights from the UK with flight times of less than six hours making the area even more accessible. 'Currently, Cape Verde has only a couple of thousand visitors each year. These figures will increase dramatically once direct flights into the new airport commence. Cape Verde is looking a viable prospect economically, with strong economic growth forecast over the next three years,' adds Andrea Hill of escapes2.com. Prices here start at £50,000 for a one-bed flat.
www.escapes2.com

Brazil
In recent years Brazil has realised its potential as a tourist and residential tourist hot spot and is now enjoying an influx of foreign investment. It is easy to see why Brazil has huge potential: there is plenty of sunshine; over 7,000 kilometres of coastline stretching across various climate zones; a good infrastructure; and importantly, good accessibility. There are over 240 scheduled flights a week from the main European airports. "Residential property investment is following hot on the heels of the boom in tourism, and recent years have seen property price increases of up to 20 per cent per annum" comments Andrea Hill. 'The rate of exchange is favourable for foreign buyers and inflation is at an all time low. The cost of living is considerably lower than Europe and foreign investment is actively encouraged by the government.' Prices also start at £50,000 for reasonable two-bed properties by the beach.
www.escapes2.com

Florida, United States
It's not a new market but there are still exceptional opportunities for growth, plus a weak dollar offers potential currency gains. 'It's experienced one of the highest capital gains growth in the world,' explains Simon Palmer of the Prestige Group. 'So far its continued growth has defied all expectations.' There is a high rental market, particularly in Orlando (Disneyland), which remains strong throughout the year. Indeed, property went up by 22 per cent in 2004, and a whopping 27 per cent in 2005. 2006 is expected to be similar. Be very careful though, as investing here is high-risk. Prices can't go up at this rate forever and the property bubble is bound to bust at some point. Not for the faint hearted and definitely seek advice before buying. £60,000 will get you a two-bed flat.
www.theprestigegroup.com