Property investors in the UK are increasingly looking to less-established foreign markets, according to a media report.

The Metro stated that a growing number of people are snapping up houses in places such as Egypt, Brazil and the Cape Verde islands.

This is because the markets are expanding at a faster rate than those in traditional investment hotspots such as Spain, France and the US.

As a result, owners of property in these countries have been collecting strong returns from both rental yields and capital gains.

The Metro added that investors are subsequently using the money to purchase a permanent residence in the UK, as they had previously been priced out of the market.

"Despite the credit crunch, buying property in Britain is still too costly for many people," the newspaper commented.

This comes after currency specialist FC Exchange said the housing market in the UK is in a state of "turmoil".