It now appears that the South African property boom has caused an oversupply of upmarket properties in Cape Town available for rent, yet there is a shortage of stock in the lower price range.

The biggest demand for rental property is now in the £260 - £430 per calendar month range.

Beverley de Jager of Rawson Property Group, who operates between Wynberg and Cape Town says: "We are not getting the 10% annual increases year-on-year because rentals have to relate to tenants' income."

Rents in Spain rose by 4.1% last year, according to the latest figures from Spain's National Statistics Office (INE). However Spanish property prices almost certainly rose by over 10% during 2004, and so rental yields in many parts of the country have fallen as a result.

The largest increases in rents were as follows: Extremadura (5.8%), Madrid (5.1%), Andalusia (4.7%), The Balearics (4.6%), Catalonia (4.4%), Murcia (4.3%) and Navarre (4.2%).

Regions with rental increases below the national average were as follows: Aragon (4%), Galicia (3.7%), Autonomous Region of Valencia (3.6%), The Basque Country (3.4%), Castilla y León, Castilla-La Mancha and Asturias (2,7%), Cantabria (2,2%), La Rioja (1,9%) The Canaries (1,7%).

With 'fly-to-buy' becoming ever more popular, 14% of UK property investors are now considering investing in property overseas, according to research carried out by Zurich Insurers.

Of the investors who took part in the survey, 46% said they were contemplating buying property in Western Europe, while 31% said they'd prefer to expand their portfolio in Central Europe. The USA and Canada was highlighted as the third most popular region for property investment. While only 4% said that they would consider investing in Latin America, deeming the region least popular.

In terms of where investors feel the best rental yields will be achieved, 44% feel that Western Europe is best equipped, while 29% said that Central Europe would provide the best overall returns.

Richard Elliott, Head of Zurich Property Investors, said, "it is encouraging that investors still seem buoyant about prospects in this sector."

The residential property market in Spain is approximately 20% over its value, according to a recent survey conducted by Pricewaterhouse Coopers.

Of the near 300 property professionals that took part in the survey, 59% believe that the residential property market is overvalued. While 64% thinks that this situation is sustainable in time. However there is concern that interest rates may be set to rise. 80% believe that the European Central Bank should not raise the rate, so as not to disrupt the market's stability.

North-East Brazil.

With 'jet-to-let' becoming ever more popular amongst the British, as an alternative means of investment. Some may want to consider buying an affordable property on the sunny coastal resorts of North East Brazil. Prices range from £15,000 for a 1 Bed Detached Villa, while for £30,000 you can buy a 4 Bedroom Detached Villa.

While prospects for capital growth for now remain unclear, Brazilian property group Signature, insist that rental returns of 10% are more than achievable when buying property in Parnaiba, which is the capital area of Piaui.