The United States housing market may still be in the middle of a downward slump, but East European real estate investors are reaping the benefits of double-digit returns - some as high as over 50 percent! The explosive growth in Central and Eastern Europe are bringing investors from all over the globe to the area. Poland With the housing market growing at more than 33 percent last year, property in Poland has the distinction of being at the top of the list for the East European real estate market. In the ancient city of Krakow, for instance, investors are celebrating a 58% rise in 2007. That means that Krakow currently generates the highest returns on real estate investment in all of Europe. This rise in property value in Poland can be partly attributed to the fact that a number of American and British companies have elected to open offices in the country. Another reason that property in Poland has become highly desirable is due to the recent trend of Poles moving to Britain to make money and returning to their homeland to open their own businesses. It comes down to basic supply and demand! Bulgaria Bulgaria is an emerging economy still finding its place after its 2007 EU accession and adoption of the Euro. This has many investors watching the East European real estate market in this area very closely. With a 30 percent gain in housing values in 2007, this East European real estate market looks to continue its growth in 2008 as well. The capitol city of Sofia has seen significant employment growth over the past couple of years and as a result property values have also been on the rise. This level of growth has been seen in the ski resort towns and coastal vacation areas as well. Czech Republic The Czech Republic is one of the shining stars in the East European real estate market. Foreign investors find that the country makes business investments and real estate investments extremely easy to conduct. Businesses who choose to set up offices in the Czech Republic find that the country offers an efficient infrastructure that can connect them directly with most European centers via railway. They also have a pool of skilled workers that work for a comparatively cheap hourly rate as compared to their output. The Czech Republic also offers East European real estate investors a high credit rating as compared to other Eastern and Central European states. Businesses who have already made significant investments in the Republic include such well-known names as Coca Cola, Volkswagen, Pepsi Cola, Siemens and others. Romania Romania is perched on the cusp of a huge real estate surge. With many lenders currently offering 100 percent mortgages, Romanians have more money available to invest in a limited supply of property. This is another example where the power of supply and demand is expected to cause property values to soar in Romania in 2008 - making it one of the top East European real estate markets to watch. Supply is so limited in Bucharest, for example, that a new complex called The Old Bread Factory has 500 reservations for just 200 units and another development called The New Town has over 450 reservations for just 220 units. There is no doubt that the real estate market in Eastern Europe is becoming one of the most competitive in the world. As people emerge from the confines of communism and embrace free trade economics the investment opportunities in these countries will simply explode.
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