Property values in various European countries are continuing to increase, according to new figures.

The Global Property Guide found that eastern European markets saw the largest rate of growth, with countries such as Bulgaria recording a year-on-year increase of 28%.

Meanwhile, the Polish market saw house price inflation of 8% in the year to July 2007.

The high rate of growth in eastern Europe has come at a time when prices in more established markets have begun to moderate, suggesting that these countries could be more lucrative investments.

Figures showed that price inflation in Spain fell to its lowest rate in 9 years, with values going up by 5.8% in the last year.

Countries such as Sweden, Switzerland and Finland recorded lower rates of growth in their property markets.

This comes after World Investment Services recommended that overseas investors hoping for high returns purchase property in eastern Europe, as it was a growing and emerging market.