The latest Assetz Property Investment Tracker shows that over the past year investors in Bulgarian property could have made as much as 99% return on investment on the right purchase, thanks largely to strong capital gains.

However, Assetz believe that such high investment levels for Bulgarian property will not last much longer. It says that rental returns have now started to lower significantly, whilst warning that rural property price growth has masked poor performance in the tourist hotspots for at least the last 12 months.

Phil Grimes of Select Property Overseas admits that there are some oversupply of property issues in certain areas of the country. "There are numerous apartments being built on the coast and certainly developments that sell out before completion are now rare," he says. "Developers who attempt to sell over-priced, poorly built apartments that are either not accompanied by leisure facilities or are badly planned will struggle to sell their developments as the average buyer has more personal considerations concerning their purchase than ever before."

However, in spite of this Grimes still believes that, overall, property in Bulgaria still represents a good investment at present. "Prices are still rising and the rental market is developing well but above all property is still cheap," he says. "People buy for many different reasons, which need to be carefully considered before purchase."

Away from Bulgaria, Assetz highlighted France as being the country with the most property investment potential for British buyers at the moment. Moderate capital gains were offset by good rental potential and the fact that purchasing a property in the country requires a lower deposit than that needed in any other country. Other pluses cited by Assetz were the country's reputation as an established market in these times of economic concern and its close proximity to the UK.

The investment potential of Portuguese and Cape Verde property was also predicted by the company to grow over the coming months, whilst the markets in Cyprus, Italy and Greece are likely to remain stable, the investment tracker indicated.

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For more information visit:
www.assetz.co.uk/tracker
www.selectpropertyoverseas.com

Article first published 29 May 2008