Property investors double money in Poland

Overseas property investors are doubling their money in Poland, data shows.

The eastern European country has retained its place at the top of Assetz quarterly property investment tracker, giving a total return on cash invested of 100 per cent in the past year.

However, bricks and mortar in another recent entrant to the European Union - Bulgaria - are heading for a downturn.

While the country remains a strong position in the tracker, with annual returns of 71 per cent, Assetz warns that Bulgarian tourist hot-spots show signs of overheating.

Rental markets are struggling in areas such as Sunny Beach and Bansko, where there is a "severe oversupply" of apartments and lack of demand.

The second quarter figures also show the UK continuing to perform well on the global stage.

The five major UK house price indices point to average annual house price growth of 11.1 per cent - equating to an average of more than £20,000.

As a buy-to-let investment location, Britain also continues to prosper, lying in third place behind Poland and Bulgaria, with gross yields of six per cent and a total return on cash invested of 68 per cent.

France ranks fourth with total returns of 59 per cent over the past 12 months, while the newest entrant to the tracker of investment hot-spots, Cape Verde, is also producing rosy returns.

The islands, off Africa's west coast, have returned 40 per cent on cash invested in the past year, boosted by low purchase costs.

Looking ahead, Assetz expects Poland, where a typical two-bedroom apartment costs just £50,000, to maintain its strong position in the table for the rest of 2007.

French President Nicolas Sarkozy's pledge to create a nation of homeowners through a number of tax breaks could spark a mini property boom in France, while the outlook for Cape Verde is also positive.

Stuart Law, managing director of Assetz, said: "Cape Verde is looking like a very interesting prospect, as tourism levels soar and the introduction of mortgages opens the floodgates to investors."