Top 5 Emerging Property Markets in Eastern Europe

While the rest of the western world wondersvertical foreign direct investment as it aligns itself
whether domestic real estate investment remainsfor membership of the European Union.
a sensible consideration now that yields and equityOpportunities for the real estate investor exist
growth rates are tumbling and the fast movingcountrywide and property prices are currently
property sector slows and even stagnates inunbelievably low.
certain countries around the world, there exists aEstonia - Estonia is one of the most successful of
part of the world where real estate sectors arethe Eastern European economies as it has
booming and the long term prospects for profitadopted and embraced a modern market
and growth are substantial.economy whilst keeping corporate and personal
Eastern Europe - home to stunning scenery,taxation levels very low. These facts have
beautiful coastlines, unexplored forests, a wealthresulted in the attraction and retention a lot of
of history and culture - and now also home tointernational business which has created local
some of the most exciting emerging economiesemployment and led to local Estonians gaining in
and real estate markets in the world.real wealth and in them slowly being able to
Here's a look at the top five emerging propertyafford to buy homes of their own.
markets in Eastern EuropeA property investor should seek to target the
Bulgaria - Poised on the brink of EU accession,local market and many who have already entered
Bulgaria is witnessing a property market explosion.the market have enjoyed up to 30% annual gains
Property investors are buying in Bulgaria nowin some areas.
because they realize that to wait until 2007 whenHungary - Hungary joined the EU in 2004 and is
Bulgaria gains full European Union membership willalready benefiting from European Union financial
be to miss out on the largest predicted price gainsaid whilst its government are committed to long
that will occur when membership is in place.term fiscal development meaning that the
Investors are being drawn to the beautiful Blackmedium to long term prospects for all areas of
Sea coastline - home to mile upon mile ofHungary's economy are excellent.
untouched, unspoilt and undeveloped sandyThe country has a growing wealthy middle class
beaches and a beautiful mild and temperatewho are now able to buy their own homes as
climate - and to the fantastic ski regions of thewages increase and the cost of borrowing
country's interior.remains low. Property investors could therefore
When Bulgaria joins the European Union ontarget local buyers - alternatively they could focus
January the 1st2007 it will begin benefitingon the tourism rental sector or the second home
financially from EU financial aid packages designedsector as Hungary is the most popular Eastern
to further boost the country's economy andEuropean country for second homers and the
improve its infrastructure. In the meantime manycountry's capital Budapest is incredibly popular with
international businesses are establishing bases inoverseas visitors.
the country and Bulgaria's economy is vastly andLatvia - Since joining the EU in 2004 Latvia's
quickly improving. All positive points for a propertyfortunes have gone from strength to strength
investor interested in the long term growth in thewith the capital city of Riga developing
real estate sector in Bulgaria.internationally competitive sectors in financial
Croatia - Home to in excess of 6,000 km ofservices, retailing and telecommunications.
untouched coastline Croatia is developing a strongLocally wages are increasing, the country's GDP is
tourist market and a successful real estate sectorhealthily improving and the whole country is
which is attracting second homers and retireesbecoming a centre for vertical foreign direct
looking for an affordable and safe country ininvestment. Again, property investors in Latvia
which to live.should seek to target the local market and can
Also positioned to gain full EU membership in 2007currently buy into the property sector cheaply
Croatia already has a very successful transitionaland hold assets while wages and prices rise.
economy which has attracted strong levels of