Bulgaria

Bulgaria emerged from the shadow of communist eastern Europe in 1989 and joined the European Union on January 1st 2007.

While the national economy is still regarded as infantile, it is developing quickly – with GDP growth of roughly six per cent annually, according to the World Bank.

Over the past ten years Bulgaria has emerged as a very popular investment option for Europeans looking for property overseas, and is now perhaps behind only Spain and France in terms of property investment.

Variety of opportunity

Its popularity has been partially based on the country's impressive natural variety; from the up-and-coming ski resorts, beautiful Black Sea beaches and picturesque natural scenery - however their have been concerns of late the market may be reaching saturation point in some areas.

The country's natural diversity has presented a wealth of options for investors.

The coastal resorts along the Black sea have proved popular with tourists, including areas around Sozopol and Sunny Beach.

These areas are proving exciting for buy-to-let investors, with net rental yields of five per cent, according to PropertySecrets.net.

However, there have also been warnings the coastal property market is overheating and it may be impossible to resell property should you decide to leave the market.

"Stay well clear of the Bulgarian coast as an investment opportunity. It has been over-hyped and over-supplied and offers poor resale and rental opportunities," commented PropertySecrets.

Skiers have also made other areas popular, including Pamporovo and Bansko.

The latter resort has over 75km of ski slopes, with something suitable for all abilities, as well as a golf course and the Pirin national park.

Yet, there have again been warnings the region may be reaching maximum capacity.

Capital gains

Sofia is another popular location. The capital has the highest property prices in the country, but can also provide the largest returns.

As well as investors, the country as a whole is increasingly popular with tourists – providing a possible increasing stream of rental income.

Tourism to the country has increased 50 per cent in the previous three years, according to property investment specialists Shooba, and the World Tourism Organisation predicts the country will receive 20 million visitors by 2010.

The climate in Bulgaria is one of the major draws for investors and tourists alike, with long, balmy summers followed by cool winters, and a Mediterranean influence along the Black Sea coast.

The cuisine is influenced by flavours from Turkey and Greece, and benefits from the prevalence of a small shop culture which has thus far not succumbed to the influence of supermarkets.

Bulgaria can be reached from a number of UK and European airports by many low-cost airlines, again making the country a prime investment location.

Positive prices

In response, prices in the country have risen by an average of 31 per cent annually in some areas over the last three years, according to PropertyShowrooms.com. However, growth has now slowed a little of late, but still comfortably outpaces other European markets.

A well renovated property in a good area can still be yours for around £50,000 in most areas of the country.

And, despite warnings in some quarters, Bulgaria looks like increasing in popularity for some time to come.

Statistics from RightmoveOverseas.co.uk suggest 51,409 searched for property in Bulgaria in September 2007; a 69 per cent increase over the previous 12 months.