Growth in European house prices is set to continue in 2005 according to the Royal Institute of Chartered Surveyors (RICS).

RICS found that the property market across Europe grew in 2004, with France, Spain and Ireland seeing property value growth in excess of 10%. Only Austria and Hungary had a relatively poor property market last year. Belgium, Italy, Sweden, Denmark, Finland and Portugal all saw price rises of between 5% and 8%.

While properties in the new EU countries in central and eastern Europe are more affordable compared to other parts of Europe, RICS has urged foreign investors to recognise the higher risk involved in investing in a relatively untested market.

For 2005, the report forecasts that property prices are set to continue rising, with conditions cooling towards the end of 2005.

Chief economist at RICS, Milan Khatri said: "Very low interest rates and increased competitive pressures in the mortgage industry are delivering solid growth in lending, which is likely to continue through much of 2005."

Michael Ball, author of the report, added: "Low interest rates are likely to continue to stimulate housing demand across Europe in the first half of 2005. Yet changes may occur towards the end of the year as pressures for increases in eurozone interest rates grow and new housing supply continues to come on stream in EU markets."

The property department at Morgan Stanley, the US investment bank, is to step up investment into Germany this year, signalling a possible recovery in Germany's property market.

It is understood that the group plans to invest an estimated €3bn (£2.1bn) in Europe in 2005 across a variety of funds, of which a significant stake will be in Germany. Property prices in Germany have fallen unlike most of Europe, where property values have boomed.

The latest multi-billion dirham development, Jumeirah Golf Estates, is now in its final stages of development.

Sultan Ahmad Bin Sulayem, Chairman of Nakheel said: "We are currently finalising the project with Greg Norman on the overall development of Jumeirah Golf Estates. We hope it will be completed in the next two months. We will then launch our sales campaign. We still do not know the overall value of the development. Between 6,000 and 10,000 households, however, will be located in the area."

The project will have four golf courses, gated residential clusters, commercial and retail facilities as well as resorts.

The construction of the four golf courses and the surrounding facilities is expected to cost Dh500 million and will be completed by the first quarter of 2007.

The Azores.

The remote and unspoilt island archipelago of the Azores has always been a destination favoured by visitors seeking peace and natural beauty. Less developed then its neighbour Madeira, tourism in the Portuguese islands is expected to receive a boost due to the introduction of non-stop flights between the Azores and the UK (3.5 hours) as of April this year.

The main island of Sao Miguel is where most tourists visit, with whale and dolphin watching, scuba diving sailing and golf all proving popular pastimes on the island. A Villa or apartment in the Azores can cost anywhere between £27,500-£105,000.

Property Growth Expected in UAE.

The property market in the UAE is set escalate to unprecedented levels over the next seven years.

Recent reports indicate that huge growth in population is expected due to a forecasted increase of 2.1 million residents by 2010 and the rising number of tourists visiting the UAE will trigger demand in both residential and hospitality sectors. As many as 45 new five and four-star hotels are coming up across the Arabian Gulf region in the next three years.

Dr Mohammed Raheef Hakmi, chairman, Armada Group says: "While banks offer much smaller returns on deposits at present, investors in real estate have reaped far higher benefits, making use of an opportunity to park their funds in this lucrative sector. This is because investors have realised that real estate offers a safe return and sustained appreciation in market value in a place like Dubai and the UAE."