Investments Abroad: With a growing economy and good value opportunities Warsaw has been deemed hot stuff and placed at the top of an international property investment survey.
The International Property Hotspot Index, compiled by the Irish-owned overseas property and investment company Prestige Group, reveals a move away from the holiday home market towards investment properties in the less traditional markets in new EU accession states.
Five of the top 10 locations in the international hotspot index are emerging markets and three are in former eastern block countries.
Warsaw, Budapest and Sofia are fast becoming solid residential hotspots with high appreciation and rental yields, according to the survey.
Top of the hotspot index, is Warsaw, which has an average price of €159 per sq ft, yields of 9.5 per cent and annual price appreciation of 18 per cent.
There are some "exceptional opportunities" at the high end of the market in Warsaw, according to the report.
In second place is Florida, which "still offers growth opportunities". While the high returns of recent years are unlikely to continue in the long term, a recently weakened dollar offers potential currency gains, according to the report.
Average price per sq ft in Florida is €245, with yields of 8.3 per cent and annual appreciation of 27 per cent.
Cape Verde, off the coast of west Africa, is ranked third in the index and is described as a market with good potential as a major year-round tourist destination with low property costs and very strong rental yields.
Fourth is the western Algarve in Portugal, which is a "stable region with good prospects for appreciation in the long term", according to the report.
London, Budapest and Sofia are ranked fifth, sixth and seventh.
Meanwhile, certain markets that were high on investors' shopping lists are now presenting increasing concerns, specifically South Africa and Dubai, according to Gerard Murphy, managing director of Prestige Group.
Dubai's property market has "overheated" and has been "over-hyped", according to the report. Average price per sq ft in Dubai is €162, with yields of seven per cent and annual price appreciation of zero per cent, the report states.
Overdevelopment and legal issues are taking the shine off the Costa del Sol, while the property law situation in Cape Town needs to be monitored, the report states.
The survey takes into account capital appreciation as well as potential risk levels, perceived ease of investment, currency and legal and financial issues.
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