Bulgaria - in the top three countries for expected growth in 2006

The reports show that there had been a 60 per cent increase in interest in Bulgaria within the past six months, with both holiday makers and prospective property investors all eager to learn more about the country.

The report indicates that in recent years property investment in Bulgaria has become increasingly common as individuals and businesses alike have looked to make the most of a rapidly improving economy and a burgeoning tourist industry.

Many experts have suggested that Bulgaria's accession to the EU - expected in January 2007 will be the final factor in opening the floodgates to a property boom similar to that enjoyed by Spain during the last 25 years.

The report points out increased tourism as yet another factor to instigate a general rise in house prices in Sofia and beyond and it is this basic assumption that has led many UK residents to invest already in the still remarkably cheap property around the capital.

Ski resorts including Borovets and Bansko are proving extremely popular as many investors look to capitalise on the fact that houses can be acquired at a much cheaper price than corresponding property in either Spain or France - indeed such is the interest that investors are paying deposits over the telephone using their credit cards.

According to a recent research, the number of Britons buying Bulgarian property rose by 77 per cent in 2005. With the increasing probability of EU entry in 2007 and flight increases to regional airports analysts are expecting a 15 to 20 per cent rise in sales over the next year as demand is set to soar even more.