One year on from the expansion of the European Union (EU), property investors have been making the most of the enlargement by snapping up property in many of the new member states.

Overseas investment has fuelled the housing market in many countries such as Cyprus, Hungary and the Czech Republic, and all eyes are now on the next batch of prospective member states to see if their property markets have similar potential.

"Sharp investors are constantly on the look out for where the next hot spots are going to be and many of the new EU member states have not disappointed," said Nick Clark, managing director of The Property Investor and Homebuyer Show North

Cyprus is without doubt the big success of the new EU states with many people who have bought property on the island seeing impressive returns. The Czech Republic, Hungary, and Malta have also seen similar effects one year into their membership and up-and-coming areas of Slovenia, Poland and Estonia are hoping for similar success fuelled by increasing tourism and commercial investment.

"However Bulgaria is being tipped by many as the place to watch with speculation that the market there will benefit in a similar manner when it joins the EU in the next few years," said Mr Clark.

Cyprus heats up

Cyprus has probably seen the most significant number of British investors, having already been a popular destination for holidaymakers and homebuyers for many years. Since its membership of the EU, Cyprus has seen a further boom with it now easier to live, work and own property on the island. In addition, the expected move to join the Euro single currency in 2007 will instigate a drop in mortgage rates to the Eurozone standard of 3.75%, helping fuel a further surge in property prices.

Pauline Gallagher from Halcyon Properties said, "Property prices in Cyprus continue to grow at a faster rate than in the UK and the area now has an established domestic property market with a healthy economy. Improvements to the infrastructure and tourist reputation mean that many investors should be ensured good capital growth and rental yields for years to come."

Bulgarian hopes

Bulgaria, hoping to join the EU by 2007, already has a well established property market with UK investors and buyers snapping up city apartments, ski chalets and beachside properties throughout the country and canny investors are looking at the opportunities to stay a step ahead in these locations.

Many financial institutions have set up offices in the capital Sofia, including Deutsche Bank, GE Capital and PriceWaterhouse Coopers sparking a strong corporate lettings market in the city fuelling the building of many apartment blocks, making it an ideal destination for buy-to-let investors.

Robert Jenkin, Director of Bulgarian Dreams said, "The last six months have been very busy for us as more investors take advantage of Bulgaria’s falling interest rates and the country’s potential for high growth. The coastal regions are proving to be particularly popular but we’re also seeing lots of interest in the mountains ski resorts as well as the capital Sofia."

Exhibitors specialising in Cyprus, Bulgaria, and many other overseas locations will be at the Property Investor and Homebuyer Show North from Friday 24 to Sunday 26 June at the GMEX Centre in Manchester. Other exhibitors will include Savills Private Finance, Urban Splash, the National Landlords Association, and Linden Homes.