The construction of new property in Cannes is being firmly restricted by the French Government so to avoid over-supply in the local property market. Consequently, the property prices in the area have risen dramatically in recent years, yet there is continuously a strong demand for property in Cannes.

Year-round festivals, such as the world-renowned International Film Festival helps to attract up to 1.5 million visitors and this in turn attracts both tourists and corporate visitors. Because of these year-round rental possibilities, prices in Cannes have risen significantly over the last couple of years. The cost of a two-bed property for example rose 23% in 2004 compared to 12.1% in 2002, according to FNAIM - a body that regulates, insures and advises French real estate agents.

With Bulgaria hoping to join the EU by 2007, many overseas investors have been frantically buying up property in the country. Consequently many financial institutions have set up offices in the capital Sofia, including Deutsche Bank, GE Capital and PriceWaterhouse Coopers.

Robert Jenkin, Director of Bulgarian Dreams says: "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."

The Cypriot property market has benefited enormously since it joined the European Union one year ago. The country is now set to join the Euro single currency in 2007, which 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 says: "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."

Rents in Abu Dhabi are soaring on the back of a strong local economy and near 100% apartment occupancy levels.

New research by property specialist Asteco reveals that average rents have risen by Dh5,000-10,000 for typical one, two and three-bedroom apartments in the UAE capital since the fourth quarter of last year.

"We're seeing colossal demand for well-maintained, affordable properties with amenities like gym, swimming pool, and underground parking," said Asteco CEO Elaine Jones. "There is some new construction, but this is falling well short of demand. A better investment right now would be to put money into buying a home, but an Abu Dhabi freehold law needs to allow full ownership with the right to demolish, renovate, or expand the property."

Malta.

Property in Malta traditionally rises an average of 8% pa. However boosted by an influx of overseas buyers and entry in to the European Union (May 2004), the last couple of years have seen average property prices rise by around 12% to 15% pa. Rental returns have also increased.

Malta attracts around 1,130,000 tourists every year, of which approximately 40% are British.