Investors pointed towards Cyprus

Cyprus has been flagged up as an ideal market for overseas property investors in the UK.

Homes Overseas described the Mediterranean island as an "elite" location, since it offers strong investment potential.

The magazine stated that average property values on the island are about £150,000, which means it is relatively cheap in comparison with Britain.

However, Cyprus was said to offer the further advantage of a growing market, as house prices are going up at a rate of about 20 per cent a year.

Therefore, investors could be able to snap up a bargain residence which will quickly appreciate in value.

As a result, they would make a healthy profit if they decide to put it on the market at a later date.

Homes Overseas commented: "The Cypriot property market has performed robustly since the country became a member of the EU and Nato in 2004."

This comes after Jet-to-Let magazine flagged up Cyprus as a particularly popular market, as it has not been "overly exposed" to the turmoil in the global economy.