Though not technically in Europe, Morocco was included in the forecast, and is also expected to make a very attractive investment, with a predicted growth of 15 per cent next year.

A total of seven European countries are forecast for residential property price growth of 12.5 per cent next year: Croatia, Cyprus, Estonia, Malta, Poland, Romania, the Slovak Republic and Turkey.


Certain markets will require caution – parts of southern Spain and Dubai, for example. This growth will again be most apparent in the emerging markets where demand keeps pace or outstrips supply.

"The appetite for second homes, whether for personal use or for investment reasons, continues unabated, facilitated by ever increasing accessibility via new low-cost air routes and the growth in supply of residential properties in both the mass and luxury sectors," added the estate agent.

However, overseas property investors need to make sure they do careful research, and be wary of areas where there is a risk of oversupply.

Higher quality properties will be making a comeback next year, often in the form of internationally branded resort schemes, with properties used for both residentially and for leisure, and increasing interest in alternative ownership options such as fractional and condominium ownership.

Forcast growth in property prices 2007

Lithuania - 20.0 per cent
Latvia - 17.5 per cent
Slovenia - 17.5 per cent
Morocco - 15.0 per cent
Croatia - 12.5 per cent
Cyprus - 12.5 per cent
Estonia - 12.5 per cent
Malta - 12.5 per cent
Poland - 12.5 per cent
Romania - 12.5 per cent
Slovak Republic - 12.5 per cent
Turkey - 12.5 per cent
Bosnia & Herzegovina - 7.5 per cent
Bulgaria - 7.5 per cent
Czech Republic - 7.5 per cent
Denmark - 7.5 per cent
France - 7.5 per cent
Greece - 7.5 per cent
Ireland - 7.5 per cent
Montenegro - 7.5 per cent
Spain - 7.5 per cent
Sweden - 7.5 per cent
Austria - 2.5 per cent
Belgium - 2.5 per cent
Finland - 2.5 per cent
Germany - 2.5 per cent
Hungary - 2.5 per cent
Italy - 2.5 per cent
Luxembourg - 2.5 per cent
Macedonia - 2.5 per cent
Netherlands - 2.5 per cent
Portugal - 2.5 per cent
Switzerland - 2.5 per cent