European Property Offers a Better Return.

Despite forecasts that Euroland equities will produce a total investment return of 12% next year, average returns from commercial real estate up to 2008 is set to prove a better investment, according to Scottish Widows Investment Partnership (SWIP).

"European commercial property is forecast to generate a (average annualised) return (capital gains plus income) of 8.7 percent a year over the next four years compared to a forecast of 8.5 percent a year from European equities," said SWIP.

The generic advice from SWIP, is that investors should aim to diversify their equity and bond pension fund investments with a greater portion of their portfolio invested in alternative assets such as European commercial property over the next four years, in order to maximise their potential returns.

"European real estate has a low correlation with equity and bond performance as commercial property returns are driven by different local factors in different countries. Bonds and equities, however, are more synchronised and more affected by global economic issues," said Ian Hally, head of property research at SWIP.

Florida's property market is struggling to cope with increased demand from Britain. Although property prices in the region have increased over the last year, a weak dollar has meant that British investors are paying less compared to this time last year.

Florida is now America's second fastest growing property market, after Las Vegas, with an estimated 18,000 Britain's having invested in the sunshine state this year alone, up 50% on 2003.

Increased interest has also been fuelled by the introduction of cheap commercial flights.

France is expected to launch open-ended unlisted real estate funds in 2005. This could attract vast interest from retail investors, as they tap into high property yields, according to Alain Brochard, the head of France's property association, ASPIM.

Brochard said: "We have confirmation for the product from the senate but we need to work out the details with the regulator."

Open-ended property funds, or OPCIs, which allow investors to buy and sell units on a frequent basis, have proved popular in Britain and particularly in Germany.

Brochard said the new funds could lead to a significant expansion to the country's existing €11 billion (£7.6 billion) real estate fund industry.

Bulgaria - Land of Foreign Opportunities.

Bulgaria has moved a step closer to joining the European Union in 2007, by approving a draft bill that will bring the country's land ownership laws in-line with the EU.

The ad hoc parliamentary committee on constitutional amendments approved a draft amendment allowing foreigners, both citizens of EU countries and citizens of non-EU countries, to purchase land in Bulgaria.

The bill is due to be approved by March 2005 according to Committee chairperson Kamelia Kassabova.

Property Bargains to be found in Portugal.

An increasing number of Portuguese homeowners are being forced to put their homes up for sale.

Recent data shows that both the country's divorce and unemployment levels are rising, which has left many unable to afford their mortgage repayments.

According to the Bank of Portugal, a total of €1 billion was owed to banks from the month of August alone.

With many homeowners financially stretched, the Portuguese daily newspaper, Journal de Noticias claims that investors can now buy a three-bed property in Lisbon for as little as €60,000, while in other Portuguese cities, properties of a similar nature are proving even cheaper to buy.