Now, however, interest in Slovenian property is resurgent, encouraged by the country's growing popularity with celebrities.

Heather Mills was the first to get in on the act this summer – she bought a £400,000 Slovenian property formerly owned by the government. Others were encouraged to follow in her footsteps by a report from Foreign Currency Direct, which tipped Slovenian property as one of Europe's best property investments.

A number of factors have contributed to the revival of interest in Slovenian property over recent months. For a start, the former Yugoslav republic was one of the first to adopt the euro, switching from the Tolar at the beginning of this year. It was also one of the most economically advanced Eastern European countries to gain accession ot the EU, with a per capita GDP of US$17,535 – around 75 per cent of the EU average.

In the first year of liberalisation, research provided by the Tax Administration shows that around 500 Slovenian properties were sold to EU citizens. These were mostly located on the seaside or in the northeastern region of Prekmurie. This figure rose to 740 properties in 2006.

Slovenian property prices have been rising by 10 to 30 per cent annually, with the average price in Ljubljana now standing at 3,000 euros per square metre. However, it is still possible to find bargain property in some of Slovenia's more rural areas. Buyers of Slovenian property will also benefit from low interest rates, a booming rental market and increasingly good access.

If you're after a rural investment opportunity, then Slovenian Properties is marketing a number of rennovation projects. It currently has an eight-bedroom farmhouse for sale on the Slovene coast, priced at 125,000 euros. 

Alternatively, Slovenian ski property is much in demand, and has excellent rental prospects. Take a look at Slovenian Properties' Kriska Vas ski house (pictured)  – a modern glass-fronted chalet with three bedrooms, on the market for 250,000 euros.   

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