With the property market in the UK currently shaky, I’m guessing that you’re considering sinking your capital in European property investment. I’m not going to tell you not to do this, but what I am going to do is say that you need to do your homework before you start.

It’s not just us Brits that are having a property investment crisis; some of our European neighbours aren’t the cash cows they were a few years back. However, there are still some good deals to be made if you know what you’re doing so it’s certainly worth thinking about.

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.