Good news for those looking to invest in European property:  nine new states have just joined the EU's border-free zone, meaning that EU nationals can now travel in the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia passport free. This will make it easier for overseas buyers to invest in Eastern European countries with booming property markets.

"Better opportunities are to be found in more emerging Eastern Europe where several markets, unlike those in the West, are closer to the beginning of their development cycles," says Emma Holifield of Property Frontiers .

Her top tips for European property investment in 2008 are Poland and Slovakia.

"Since Poland joined the EU in 2004, it has attracted a very large amount of foreign investment, currently $6.5 billion per year and growing," she says. "It is now rated fifth in the World FDI Confidence Index and has recently been awarded 'low business risk' status from Control Risks' report. Capital is now flooding in and a very confident finance & banking system has matured. Up to 80 per cent LTV mortgages are now available and the residential loans' market is expected to continue to grow at a level of 20-30 per cent per annum until 2009. Capital Gains Tax is 0 per cent after five years and prolific infrastructure improvements are being implemented. In general, then affordability is increasing, demand outstrips supply and the growth potential is enormous."

She describes the demand for property in Slovakia as 'booming', and particularly recommends the city of Kosice. "It is Slovakia's  second city, over 50 per cent cheaper per square metre than Bratislava and with a significantly undersupplied market. As a result, demand is expected to be high and the potential for strong returns high, especially as rising Slovak wealth is fuelling the demand for good quality accommodation. Due to adopt the Euro in 2009, Slovakia's investment and economic future should thrive."

Robin Bowman, Editorial Director of Property Secrets, agrees that Slovakian property is high potential, and that Kosice is the place to look. He comments: "Slovakia is a relatively tiny market but a pocket sized powerhouse of an economy, which, across the board, probably can claim to show the best economic numbers in Europe -  low inflation falling unemployment, sustainable wage growth and, recently, an export surplus. This economic strength is now driving a strong resurgence in the property market of Bratislava, the country's capital. Our tip for excellent property price growth in 2008 is Kosice, where property prices are half the price of those in the capital and where we are already seeing some turbo-charged price growth."

Slovakia Venture is currently offering a three-bedroom apartment in the Kosice area for 72,000 euros. It has mountain views and is close to both golf and ski resorts. 

Of the other states which have now become a part of the border-free zone, Bowman seems most positive about property in Slovenia (pictured).

"Supply of new builds in Slovenia is very limited," he says. "The country adopted the Euro at the start of 2007- a clear sign of its stable and star-performing economy. It has traditionally been overlooked by investors due to its poor mortgage options, an overly complicated buying process and slow growth. But this is all changing. The government has made significant tax cuts, a real loosening of mortgage restrictions and now with the added attraction of it being in the Eurozone, Slovenia presents a real opportunity for investors."

If you're keen to get your hands on a city home in Slovenia, then Slovenia Properties is offering a four-bedroom house in the capital, Ljubljana, for 100,000 euros. The property includes a small garden and double garage.

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