90% of overseas property investment within Europe

Up to 90 per cent of all overseas property owned by UK investors is within the EU a new study has revealed.

According to Holiday-Rentals, North America and the Caribbean are the next most popular investment destinations, representing 5.2 and 1.5 per cent of properties worldwide respectively. In North America, Florida is still the most popular destination, with 89 per cent of buyers from the UK purchasing property in the Sunshine State.

The picture in the Caribbean is similar with Barbados dominating the market.

Up to 49 per cent of buyers investing in the region buy on the island.

The islands of St Lucia, Antigua & Barbuda, Trinidad & Tobago and Aruba are also important Caribbean investment destinations, accounting for nine, eight, seven and six per cent of sales respectively.

It is, however, Europe which continues to dominate overseas investment markets, according to Holiday-Rentals.

Established, western destinations - including Italy, Spain, Portugal and France – continue to account for the largest percentage of purchases, but developments in the airline industry have begun to shift the pattern eastwards.

Emerging property markets in Bulgaria and Croatia have been touted by industry insiders as the 'next-big-thing', where developing tourist industries and the prospect of high levels of capital gains have provided an incentive to invest.

Yet, the often overlooked Montenegro has been the real star performer in the east of Europe.

The number of properties listed with Holiday-Rentals increased 113 per cent over the 12 months to October 2007, showing a real boom in interest in the market.

Both the Canary Islands and Cyprus are also important, account for five and four per cent of the market respectively.

Holiday-Rentals also identified Greece, Germany, Malta and Turkey as potential growth areas with the number of investment destinations increasing much faster than the European average.

Wherever you invest research is essential.

"Be sure to visit your chosen location at different times of the year. Remember, the length of the holiday season is not dependent on climate alone," said Greg Grant, UK country manager, Holiday-Rentals.

"Your chosen location may enjoy year-round sunshine, but are flights still available outside peak season, and are local shops and amenities still open? You should also consider how many airlines fly there."

Outside of these key regions, South Africa, Bali and Thailand have all seen the number of properties listed with Holiday-Rentals increase.