Slovakia emerges as European property hotspot

Slovakia has been identified as one of the best long-term international property investment locations by a new report.

The eastern European country has witnessed economic growth of ten per cent annually since joining the EU in 2004, attracting the attention of specialists PropertySecrets.net.

The republic also has a flat-tax of 19 per cent and this, coupled with further economic reform, has made the country, especially the capital Bratislava, a good long-term opportunity according to the organisation.

However, at present rent yields are falling at between two and four per cent annually, largely due to an oversupply of property in urban areas.

"Overall, the Slovak Republic is underpinned by very strong fundamentals, which would suggest this will eventually filter into the property market. When it does - expect prices to take off substantially," commented PropertySecrets.

Bulgaria in contrast has been dramatically over-hyped over the last three years.

Unwary investors, mainly from the UK and Ireland, have purchased property in the country's sea and ski resorts, but have been poorly rewarded.

Some areas of the country have now become notorious for low rental yields and poor resale levels.

"The negative press caused by the over-hyped holiday sector is quite a shame as Bulgaria does offer investor good long term investment opportunities in its key cities," commented PropertySecrets.

Sofia, for example, saw property prices increase 14.9 per cent in the first quarter of 2007 alone, with demand consistently outstripping supply.

Poland and the Czech Republic have also been identified as possible long-term investment opportunities.