John Howell & Co: 020-7420 0400

PARIS

WHAT & WHY? Paris is never going to go out of fashion, and tourist rentals have the best returns. Howell likes the upmarket areas in the centre of town: “The 3rd, 4th and 6th arrondissements make the most money in terms of capital growth and rental income. You can expect 15 per cent price rises and rental returns of 6.5 to 7 per cent after deducting running costs.” Make sure your property is well marketed and beautifully furnished, and if you are buying a 6th-floor apartment it should have a lift. Also check the noise levels and the views. Mortgages in France are available at interest rates of less than 3.5 per cent and interest-only deals are now available too.

FOR SALE: This one-bed flat in St Germain des Prés, above, would let for about €300 (£212) a week. Price: €570,000. Contact: Emile Garcin, 020-7590 3130, www.emilegarcin.fr

2 DUBROVNIK

WHAT & WHY? Prices have risen here by more than 50 per cent over the past two years and Howell believes that city-centre apartments have a lot further to go. “Dubrovnik is a World Heritage City, yet compared with others property prices are still within reach. It is the rarity value — I expect prices to rise by 20 per cent a year for the next few years.” New two-bed flats cost less than £200,000, and rental returns after running costs are 5.5 to 6 per cent, although Howell feels this should rise. However, foreigners cannot yet obtain a mortgage in Croatia.

FOR SALE: The four-bed apartment, above, needs some care and attention and is a ten-minute walk from the Old Town. Weekly rent would be from £300 to £420, depending on whether it is let on a long or short-term basis. Price: £261,000. Contact: Croatiansun, 00 385 20 31 22 28, www.croatiansun.com

3 NICE

WHAT & WHY? Nice regularly tops the poll of the most desirable places to live in France, and according to Howell offers a combination of “true class, easy access and a stable market”. It is not just the city’s residential rental market that is healthy — long summers mean that there is also a thriving tourist rental market, especially in July and August. Property prices rose by more than 10 per cent last year and rental returns of 6.5 per cent (after running costs) can be expected. A two-bed flat in the Old Town will cost between €200,000 and €300,000.

FOR SALE: The one-bed apartment, above, in a popular residential area of Nice, is in need of some renovation. Once refurbished it could be let for between €500 and €600 a week in high season and €300 to €400 in low season. Price: €250,000. Contact: HomeAbroadFinders, 00 33 493 440 583.

4 SPANISH GOLF RESORT

WHAT & WHY? Spain is the second most popular golf destination in the world — there are 65 courses on the Costa del Sol alone, and a decent two-bed apartment on a golf course there would cost about €400,000. Some areas have suffered from overdevelopment, but as Howell points out, “the market here has been going through the doldrums, so there are some good discount properties in good locations. Price rises of 20 per cent are a thing of the past; increases of 10 per cent are now more realistic, but only if you buy wisely.” For holiday lets rental returns are about 6.5 per cent after running costs.

FOR SALE: Two-bed apartments in the Fontana Golf development on the southern Costa Blanca, above, cost from about €144,000 and would let for €335 a week in high season. Contact: Headlands International, 0845 9005252, www.headlands.co.uk

5 BRATISLAVA

WHAT & WHY? Bratislava, the capital of Slovakia, has benefited from substantial foreign investment and there is local demand for good-quality rentals. The city is only 40 miles from Vienna but property is far cheaper: apartments cost about £65,000. Howell says there is “huge growth potential, especially for new apartments off-plan”. He adds: “The level of investment is low: you would need about £20,000 and Slovakian mortgages are available with rates of about 6.75 to 7 per cent.” Rental returns are quite low at 5.5 per cent after running costs but capital growth has been 15-20 per cent for the past two years.

FOR SALE: One-bed flats, above, with 24-hour concierge and roof-top pool, cost from £64,000 and would let for about £115 per week on a long-term let. Slovakia Investment Property, www.slovakiainvestmentproperty.com, 020-7152 4014