Ever since the prices of properties in countries like Spain and France started to go through the roof, Brits have been looking out for spots that will offer relaxation, culture and, preferably, some stunning surroundings, without sending them bankrupt.

Bulgaria
For the last few years Bulgaria has been popping up on the radar of property investors with increasing regularity. Political progress, high natural beauty, a low cost of living and, most importantly, cheap property prices have all been factors in the country's growth in popularity during this time. In addition to its white sandy beaches and snow filled mountains, it is home to beautiful churches, fascinating Balkan culture, and picture-perfect rural villages. During the initial stages of popularity the average investor's attention has mainly focused on the Black Sea Coast and the country's up-and-coming ski resorts. In recent months this is something that is beginning to change a little, as people, tempted by the beauty, history and charm of the place, head inland to explore the area at the bottom of the ski slopes in search of that bargain basement property goldmine. As such, cheaper properties in rural towns and villages with tourist potential are starting to receive more attention than they did a year ago.

Amar Sodhi, managing director of Avatar International believes that "As a rule, property prices in inland Bulgaria are cheaper than the tourist destinations of Sunny Beach or Bansko. However, if purchasing for investment, property on the coast or in a popular ski or golf resort is generally a safer investment option due to its greater letting and resale potential." However, if instant profit is not at the top of your list it is worth bearing in mind that Bulgaria is home to a number of inland spa towns and cities with ancient Roman attractions such as amphitheatres, ancient walls, baths and lakes. Due to the previous lack of interest in these areas prices are still incredibly low but as the country develops this is likely to change. One such place is the city of Plovdiv. Located in the southern central part of Bulgaria it is the second-largest city in the country with a population of 350,000. Situated within the city is the Old Town, a near contemporary of Troy and a place that is renowned as the cultural capital of Bulgaria. A quick wander around will show you exactly why. It has a perfectly preserved Roman amphitheatre, narrow and atmospheric cobblestone streets, pretty parks and charming old houses that have been standing since the Bulgarian national revival in the 18th century.
 
A four-bedroom property requiring renovation just outside the city can cost as little as 10,000 euros (approximately £6,850). A two-bedroom apartment in the city starts at 25,000 euros (approximately £17,138). As with much of Bulgaria, Veliko Tarnova is a town with so much history it could make your head spin just thinking about it. Nowadays the town is popular for its picturesque views, beautiful architecture and its cultural and historic significance to the country.  During the day it is possible to wander through the streets visiting museums that document the town historic significance and witnessing tradesman using original tools and applying the same techniques that have been learned over the ages in the production of modern-day crafts. In the evenings the entire town lights up with the sound-and-light audio-visual show as fountains of fairy lights illuminate the buildings and streets in what is a one of a kind in Bulgaria, and a real tourist draw.

A two-bedroom apartment in the town starts from 30,000 euros (approximately £20,572). Houses of all shapes and sizes that require renovation can be bought just outside the town for under 10,000 euros (approximately £6,850). Sandanski, situated in south-western Bulgaria at the foot of the Pirin Mountain in the valley of the Sandanska Bistritsa River, is a stunning town famous for its natural spa and climatic treatment.
 
From a weather eye, Sandanski has everything going for it: warm summers, short winters, low annual rainfall, low humidity and is officially the warmest, sunniest town in Bulgaria. And if that's not enough to entice you there straight away it is home to numerous wells and natural springs that produce mineral water with health benefits good enough to make the town a centre for modern science-based climatotherapy, spa treatment and rehabilitation for people with a long list of ailments.
 
A one-bedroom flat situated in the town will start at around 35,000 euros (approximately £24,000). Larger houses, villas and land can be bought around the town and start at as little as 7,000 euros (approximately £4,799).

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Montenegro
Montenegro can be found occupying a space on the Adriatic coast sandwiched between Albania and Bosnia-Herzegovina. It is a relatively small country with a population of around only 700,000 people but is attracting attention from investors with an eye on the future. The country is still relatively undiscovered in terms of property investment and has yet to fulfil its tourist potential. However, the fact that it has stunning white sand coastlines, breathtaking mountainous countryside, a fantastic climate and is in the first stages of the EU accession process means that it is unlikely to stay this way for long. From a practical point of view, the fact that the country has no capital gains tax and it is possible to obtain full freehold of your investment in less than a month means that there are plenty of bargain basement opportunities to be had.

According to Charlotte Williams from overseas property specialists Someplace Else, Montenegro benefits from picturesque scenery, an excellent climate and reasonable property prices yet it is still relatively undiscovered compared to its neighbour, Croatia. The number of tourists visiting Montenegro has increased significantly in recent years and this coupled with more foreign investment and possible EU membership will greatly impact on the economy and the property prices.

The country managed to avoid much of the devastation felt by other former-Yugoslavian countries during the civil war of the 1990s and is now going through a period of rapid change and economic growth. It still has some way to go before it can be considered a significant economic success story but there is no doubt that it is a safe and welcoming country. Sodhi says, "Montenegro offers excellent value for money and it has all the beauty of the Croatian coastline, only with warmer weather and cheaper property prices. The country has the potential for good rental returns and an increasing number of people are choosing Montenegro as a holiday destination. The anticipated introduction of direct charter flights from August 2006 will add to Montenegro's accessibility and appeal."

Kotor is a busy port with population of around 25,000 and a beautiful old city quarter filled with Venetian architecture. It sits at the base of Mount Lovcen at one end of a natural harbour. The mountains around the bay slope steeply to a narrow shoreline on which citrus fruits and subtropical plants grow and the beginning of a tourist industry is developing. With its narrow streets, historic monuments and pretty buildings, it has many of the features associated with a typical Mediterranean town, including a reliance on tourism, fishing and agriculture as its main industries. Here, prices for a two-bedroom apartment needing renovation will start at 50,000 euros (approximately £34,284).

The coastal town of Herceg Novi is more than 600 years old and has had a turbulent history. It is home to fortresses and monuments that visually document its past and boasts the Savina Monastery, a place of art and culture. Like Kotor, it is situated at the foot of a mountain at the entrance to one of the most stunning bays in the world. However, it is slightly larger with a population of around 42,000 people and in this case, the mountain is Mount Orjen home to some of Montenegro's best skiing facilities. In Herceg Novi, a new, one-bedroom apartment starts at 25,000 euros (approximately £17,138). At 2,500 years old, Budva is one of the oldest towns in the Mediterranean and is considered to be at the centre of Montenegro's tourism industry. The residents have taken a great deal of time and care over the restoration of many of its historic buildings and there is now a tasteful mix of the modern and the ancient. Home to bays, beaches, steep cliff-faces, modern hotels, age-old ruins and a long list of cultural events, Budva is at the pinnacle of Montenegro's progress as a tourist destination. Here, you can buy a new two-bedroom apartment, off-plan for 70,000 euros (approximately £47,995).

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Croatia
Croatia sits on the Mediterranean, bordering Slovenia, Hungary, Serbia, and Bosnia and Herzegovina. The country has a population of around 4.4 million people, the majority of whom live in one of four main areas including the capital city Zagreb, Ojisek or the ports of Rijeka and Split in the north. It has one of the sunniest coastlines in Europe with dry summers and mild winters. Further inland the summers are very hot and the winters cold and snow-filled.  The Croatian property market has really taken off in the past couple of years as it has been identified by investors as an up and coming economy with fantastic growth potential. The prices of properties are a little higher than in Montenegro but they are already proving to be fantastic investments for those who got in early. Prices have risen in the past year but bargains are most definitely still available.
 
Amanda Billige from Croatiansun says, "Over the next ten years, growth in Croatia's travel and tourism demand is expected to exceed, by nearly 66 per cent, the 4.2 per cent annual average growth projected for the European Union. As the international market becomes increasingly aware of  Croatia and its unique attractions, this will encourage further tourism growth and a strong real estate market."

One place that is proving particularly popular is Istria in the north west of the country. This peninsula of Croatia has been called the 'new Tuscany', such is the serene natural beauty of the area. Istria has witnessed a steady and reliable rise in house prices over the previous two years and still has plenty of room for growth. Its close proximity to Trieste, which is serviced by Ryanair flights, means that it is easily accessible and therefore ideal for holiday lets or second homes. Prices there are a little more expensive than the Croatian average because of the high demand and the fact that Istria's location makes access to central Europe incredibly easy. It is home to a number of historic coastal towns such as Umag, Porec, Rovinj and Pula that all have their own  character and frequently top polls as the country's top destinations. Here, a new one-bedroom apartment bought off-plan starts at 66,000 euros (approximately £45,252).

Vodice is another place for a bargain. It is a stunning coastal town that enjoys crystal clear waters and is only a short distance from the ancient town of Sibenik. To the north lies the river Krka, which is a protected National Park. In Vodice itself a modern 400-berth marina has been built and there is a small sports harbour where you can hire boats and enjoy the water. A new highway and a stop on the European inter-rail system makes the area highly accessible and both Split and Zadar International Airports are within 70 kilometres. Here, a one-bedroom apartment overlooking the town and the sea starts from 62,000 euros (approximately £42,510).

Romania
Romania, located to the north of Bulgaria, is one of a number of rapidly developing property hotspots and, according to many property experts, now is the time to invest there. Whether it is as a pure investment or as a holiday or retirement home you are likely to find what you want at a fantastic price. The country is due to join the EU in the next two years and an overall improvement in the quality of buildings is already occurring as regulations are put in place. Meanwhile, the local property market is developing well and the economy has reached stable ground. As the population's purchasing power increases so too should the value of houses as more people opt to buy rather than rent.
 
In the west of Romania, Timisoara is a historic city  close to the borders with Serbia and Hungary. The new economic upturn in Romania started there and it is now one of the most rapidly developing cities in the country. It is within easy reach of Hungary's capital, Budapest, and its close proximity to breathtaking mountains, beautiful lakes and rivers lend it holiday home appeal. For those who enjoy city life, it is home to beautiful cathedrals and some good shopping. Here, plots of land for development sell for 35 euros per square metre (approximately £25).
 
Nearby Moneasa is an all-season mountain resort situated on the river Moneasa. It is 70 miles north east of Arad and two hours' drive from Timisoara. The resort has a moderate climate with pleasantly warm summers and mild winters and is home to thermal springs. For the active and health conscious it the ideal spot for all mountain activities, including trekking, hiking and skiing. Although tourism has already opened up there, it is a particularly beautiful area of Romania and it has the added bonus that there are still many possibilities for business development. There are opportunities to buy houses, land and businesses, particularly for tourism, in this area. Here, a house with two buildings and five bedrooms  costs 40,000 euros (approximately £35,715).

Baile Herculane was a glorious spa town but has fallen on hard times in recent years. However, a good restoration project is starting to make a difference and when finished this resort could be a top attraction in central Europe. The area has numerous spas and baths and is surrounded by mountains, lakes and rivers, which all combine to make it a good place for leisure and health activities. According to Philippa Weitz of PWTinRomania, Baile Herculane is one of western Romania's best-kept secrets. "It is a beautiful spa town with natural thermal springs everywhere in a mountain setting. It looks like a faded French spa town with glorious run-down buildings. My forecast is that in five years this will be a hot tourist destination", she says. Here, a residential property with a courtyard and a summerhouse will cost around 50,000 euros (approximately £34,244).

Keep it Crete
Crete is a region famed for its hospitality, healthy diet and longevity of life. It has more than 300 days of sunshine every year, the lowest crime rate in Europe and an extremely cheap cost of living – and currently has some truly affordable properties. In western Crete homes by the sea and, further inland, traditional village properties can be found for under £40,000. In the popular Kalives village, beachfront villas with breathtaking ocean views, minutes from the medieval city of Chania, can be picked up from £81.000. Ten minutes from the bustling coastal village of Platanias, is the Olive Grove, a beautiful site with traditional-style houses, each set on a spacious plot, with stunning views of mountains and olive groves, starting at £54,000.

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Cyprus
Most people find anything Mediterranean beguiling: the sapphire blue sea, long sunny days, pastel coloured buildings dotted on the landscape, healthy diet and friendly hospitable people, but Cyprus has something extra – a comfortable British feel without losing its Cypriot identity.  Property prices were rising dramatically before EU Membership in May 2004 and have now settled to around 8–10 per cent but with VAT at 15 per cent going onto land in 2006, and adopting the Euro in 2007, everyone is anticipating further price rises. It is still possible to get a good deal with a new spacious two bed apartment in an attractive complex with communal pool and sun terraces costing around £94,000.

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Spain
The chances of picking up a property under £100,000 on a costa these days are slim to say the least, as prices have gone through the roof in recent years. However, if you can handle life in rural Spain, away from the hordes of British tourists and holiday home owners then you will definitely still have a chance of finding a place in the sun on a bargain hunter's budget. In Andalucia, the peaceful little town of Campillos situated between the Costa del Sol, Granada and Sevilla, a large four-bed in good condition with outbuildings can be bought for 130,000 euros (approximately £89,125). In the nearby village of Freila you can get a beautifully restored three-bedroom, two-ensuite cave house with all the necessary furnishings for 80,000 euros (approximately £54,846). The property is set into the hillside and offers great views of the surrounding countryside.

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Article first published in February 2006