New research from Holidaylettings.co.uk has revealed that emerging markets dominate the overseas property investment rankings…

With yet another interest rate rise in the bag for the banks, expect the British obsession with property investment to take another step towards the nearest airport and the newest investment hotspot.

Holidaylettings.co.uk has seen an abundance of holiday homes being advertised in new locations since the start of the year and now offers accommodation in 100 countries.

New countries on the holiday home map: Jan – June ‘07

1. Croatia

2. Hungary

3. Slovenia

4. Mexico

5. Argentina

Countries adding greatest volume of holiday homes June: ‘06 - June ‘07

1. Spain

2. France

3. Italy

4. Portugal

5. Cyprus

Argentina and Brazil come to the fore

New self-catering holiday offerings include eagerly awaited Eastern Europe entrants Poland, Estonia and Slovenia and a South American influx, most notably in México, Argentina and Brazil. Dubai has come into its own in the last 12 months with its offering of self catering accommodation as an alternative to hotels. With many new developments underway there the number of self catering options is expected to grow.

Traditional holiday home favourites France, Italy, Spain and Florida, where tourism and holiday property are already so well established are still attracting investors, a growing number of which cover their costs by letting them out to holidaymakers. Over 2,000 Spanish holiday properties have been added to the site in the first six months of 2007, compared to only 1,200 added in the same period last year.

For those seeking the laid back lifestyle and temperate climate found in Spain, but away from the over development of the Costas, Portugal has experienced the fiercest holiday home growth in Western Europe in the last year. The number of Portuguese holiday homes available to let through Holidaylettings.co.uk has increased from 300 to just under 1,000 in the last 12 months, an increase in excess of 300%.

Europe’s ongoing attraction

Another destination showing investment promise and working on attracting more holidaymakers is Cyprus. The number of holiday home rentals in Cyprus has more than doubled since June last year, supporting figures from the Cypriot Land Registry which reveal that 12,000 Britons now own homes in Cyprus.

“These figures demonstrate the ongoing attraction of Western Europe as an investment location and how, with the case of Portugal, with its easy access from the UK it still has property investment potential,” says Ross Elder, MD of Holidaylettings.co.uk. “With yet more investment in Eastern Europe and South America it will be interesting to monitor how these markets develop in the next couple of years.

“It is vital for investors that there is a sufficient tourism draw and affordable flights are available in order for holidaymakers to be drawn to these areas. No matter how many developments are built, renovations completed or holiday homes advertised there needs to be a demand from holidaymakers for self catering accommodation.”