Cyprus and Bulgaria ranked top for buying abroad

aboutproperty.co.uk 19th Decmber 2005

Cyprus and Bulgaria have been rated as the best places to buy a property abroad in 2006.


At the same time property investment firm Assetz has warned investors off Spain, Florida and South Africa.

Stuart Law, managing director of Assetz, said today that southern Cyprus had more going for it than almost any other area of the world.

"The complete redevelopment of Paphos airport, due for completion in 2008, will bring increased levels of tourism to the country and additional investment opportunities, prompting an increase in house prices," he explained.

"Entry to the euro is beckoning in 2007/8 which will pre-empt further price growth. Rental yields remain at a confident eight to nine per cent with a year round rental market in some parts of island."

Bulgaria is also looking like a good prospect, he added.

"Bulgaria is likely to continue proving lucrative as a long term investment into 2006, with ski resorts boasting year round rentals and yields of up to 12 per cent - as much as double those in the coastal resorts," Mr Law explained.

"The ski resorts thrive through the summer months, offering activities such as hiking, fishing and mountain biking. The low cost of living (a pint of beer for example, costs 50 pence), new cheap flight routes and world-class ski facilities, mean Bulgaria is now providing healthy competition to the French and Austrian ski markets."

However Mr Law advised against investing in properties in Spain, Florida, and South Africa.

"Valuations on Spanish property have overshot the mark and investors may come down to earth with a bump in 2006 as prices fall back into line," he commented.

Florida is "one of the riskiest investment zones" in 2006, with US interest rates rising and buyers realising hard times could be ahead.

South Africa was warned against as there is evidence of an oversupply of high-density apartments and a fall in demand for rental space. A high mortgage rate of nine per cent and recent rapid growth in house prices has also seen rental yields halve in 2005.

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