Property prices on Mediterranean coastlines are still increasing in the first months of 2008 despite nervous markets elsewhere in Europe.

A recent agreement between France, Italy, Morocco and Malta is possibly helping the latest surge in real estate prices in the Mediterranean. The agreement to stop building properties within 100 meters of the coastline means no more new growth in waterfront properties. The existing homes and other real estate could continue to rise in value for months to come.

Romania is proving to be a safe place to invest with high capital appreciation especially in the Bucharest area. The property market which offers homes at very low prices has in some areas of Romania seen bullish growth rates of 25% to 30% p.a. for the last 3 years. Romania is currently undergoing major infrastructural developments which will see further capital growth all over the country.

What is for sure Romania offers investors a one off opportunity to enter a market in its infancy. Readers of my articles will know that my firm belief is that profits are not just made on sale but on the purchase price. This is why Romania has a compelling case for overseas property investment but you will need to get your skates on.