Bulgaria and Romania top overseas property investments

The number of Britons buying overseas property in Bulgaria and Romania is set to increase next year.

With former Communist states Bulgaria and Romania joining the EU from January 1st 2007 the central European countries are set to become two of the favoured locations for UK residents looking for an overseas property.

"Bulgaria and Roman’s official inclusion in the European Union is a key opportunity for property investment in these emerging markets," said John Triton, of Bulgaria, Romania and Turkey, MRI Overseas Property.

"Based on the past history of other Eastern bloc countries joining the EU, where property prices have risen significantly these markets look set to become strong areas for capital growth."

And EU status is just one of the reasons that these markets could do well.

"With major tour operators now increasingly starting to focus on Bulgaria and Romania, the tourism boost will in turn feed the rental market so second home owners have the opportunity to generate a rental income," Mr Triton said.

"The new EU status will benefit the existing and future investors and we expect growth to continue to increase for several years to come."

Research from MRI Overseas Property reveals one in seven (13 per cent) of the Britons thinking about buying a property abroad already consider either Bulgaria or Romania.

But MRI Overseas Property is warning potential investors to not be swept up in a perceived "gold rush".

"Prospective buyers should ensure they do their full research into the local area’s economy, facilities and infrastructure and research the property’s potential rental income before investing in properties in these new European markets, as well as being prepared to view the purchase as a long-term investment," the company said in a statement.