Czech Republic
Although no longer the 'property hotspot' of a few years ago, Czech Republic in north Europe still has a buoyant market popular with foreign speculators. In particular, investors are drawn to the market by its comparative stability and the strength of the Czech economy. In addition, experts such as Property Secrets have predicted that the changes in VAT laws to be implemented in 2008 will spur investment in the Czech Republic. In other words, we could expect to see a second property price boom.
Outside Prague, one of the most promising investment hotspots is the city of Brno. Although property prices are almost a third of what they are in the capital, constantly improving communications and infrastructure are boosting the market. Ryanair recently initiated a new route into the city, while a major new motorway is planned for completion in 2008. Brno also won the competition for European City of the Future in 2005. Another excellent choice for investors is Olomouc, a smaller city which has nevertheless seen a huge influx of foreign commercial investment in recent years and has a booming tourism industry. 

Slovakia
Slovakia is situated in a strategic location at the heart of north Europe. Benefiting from beautiful countryside, good road networks and excellent air communications, the country has all the ingredients for a popular tourist destination. Since joining the EU in 2004, Slovakia has enjoyed amazing economic growth – in 2006 it outperformed all its neighbours with a GDP growth rate in excess of 8 per cent, and a similar level of growth is forecast for 2007. If you're intending to put your money in Slovakia, the capital, Bratislava, is probably your best bet. Cheaper than either Prague or Budapest, the city has yet to attract the level of international attention that it deserves. Bargains are readily available across the city, and should yield good returns in the medium-to-long term.
Good news for Slovakian property investors

Hungary
Unlike some of the countries soon to be joining the EU, Hungary has already had the benefits of substantial infrastructure investment. As Pauline Scrace from International Horizons explains, this has made things much easier for overseas buyers: Hungary's finance and legal systems are currently being honed to make the once-torturous property-buying process run ever-more smoothly," she says. "Regular flights by Easyjet and other budget airlines have made the city easy and cheap to get to, and weekend accommodation is already a recognised sector of the property market."

If you want to get the most out of your Hungarian investment then try speculating outside the capital. Lake Balaton, south west of Budapest, is an insider secret, with older properties available in the area for as little as £20,000. "Other areas worth considering are the ski resorts of the north-central Matra Mountains," says Scrace."Also the beautiful baroque city of Eger, famous for its Bull's Blood wine."

Finally, the garden city of Gyomro is tipped by developers to be an excellent long-term Hungarian property investment. Fifteen minutes drive from Budapest city centre, the lakeside city is fast becoming a regional, commercial, educational and tourism centre.
Hungarian property to fly higher?

Russia
Russia is undoubtedly one of the most intriguing countries in the world – and during the past few months international property investors have undoubtedly begun to feel the pull of curiosity. Property in the beautiful city of St Petersburg has been performing increasingly well (an incredible 115 per cent in 2006, according to Knight Frank), and prices are expected to continue to rise during 2007. Other cities of interest include Moscow, Yekaterinburg, Kaliningrad, Perm, Samara, and Ulyanovsk.
Property in Russia a prime choice

Ukraine
According to emerging markets specialists Property Frontiers, property in the Ukraine should be seen as a long term investment. The primary focus of international speculation is the capital, Kiev, but the cities of Kamyanets-Podilsky and Lviv are also worth a look, as are the early 20th-century resort towns on the Black Sea coast.
Ukraine: A property hotspot in the making?

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Article published in July 2007