A combination of attractive countryside, empty beaches and skier-friendly pistes have been drawing Russian investors to the Ukraine for years. Now, with property prices in some areas of the country rising between 30 and 40 per cent per annum, it can't be long until the British catch on.

"Land and property prices in Kiev, the capital, have doubled over the last year and this trend looks set to continue," says John Miller, managing director of Thomas and Addison. "Other major cities have seen increases but perhaps not to the same extent and also not from the same starting value. Returns of 100 per cent have not been uncommon in Kiev over the past year. Returns of this magnitude are clearly not sustainable in the long term, but significant growth potential still exists."

If you're searching for a house that will serve as a luxury holiday destination as well as an investment, then International Horizons is offering a number of properties around Kiev and the Crimea. A budget of £150,000 will buy you an 850-metre-squared cottage for renovation in the historical Crimean city of Sevastapol, while a luxury house on the outskirts of Kiev can be obtained for £389,000.

According to Pauline Scrace from International Horizons, however, it is Ukrainian ski property which will provide you with the best investment returns. "There is a lack of accommodation for skiers and snowboarders, which is why property in the mountains is a good investment," she says. "Ski-infrastructure in the Ukraine is being updated, and ski-properties can produce year-round revenue."

International Horizons is currently offering apartments in Eagle Valley (pictured), a development overlooking the prestigious Slavsk resort. Facilities available in the development include an indoor swimming pool, multi-gym, solarium, sauna and forest park. Best of all, apartments start at just £25,868 – and prices are expected to increase substantially as Western investors catch on to the potential of the Ukraine.

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Article published on 28 February 2007