How has the Bulgaria property market changed since it joined the European Union in January?

The changes have been generally positive. Building standards have improved and now have to adhere to EU regulations. Property prices have risen strongly over past years in anticipation of EU accession. Although prices have continued to rise in 2007, the pace has been slower.

What attractions does Bulgaria offer to tourists?

Sofia is deceptively close, being only a three-hour flight from London, and offers both winter and summer activities. Ski resorts such as Bansko and Borovets led to it becoming a bid city for the forthcoming 2014 Winter Olympics. Bulgaria is also well placed to take a commanding share of the emerging spa tourist business because of its extraordinarily large number of both hot and cold mineral water springs.

What are the main differences between the property market in the UK and in Bulgaria?

Unlike the UK market, there is not yet a domestic buy-to-let market as home ownership in Bulgaria is at a high level. However, in the tourist resorts there is a strong buy-to-let market coming from international investors. In Sofia we are seeing an expanding expatriate buy-to-let market.

Will the issues of the credit crunch affect property in the former Eastern Bloc?

Clearly there has been a widening of credit spreads but this has not been accompanied by a real domestic crunch or a dislocation in onshore markets as has been the case in the US. Interestingly, equity markets in Bulgaria, Romania and Slovenia ended the month of August up by 2.3pc, 0.6pc and 7pc respectively. The property markets have been somewhat insulated from the problems elsewhere as emerging countries are undervalued compared to Western Europe.