Estonia has been named as the best nation in the central and eastern Europe (CEE) region in terms of its physical and intellectual property rights.

In the International Property Rights Index (IPRI) 2012, compiled by Property Rights Alliance, Estonia was ranked 28th in the world and first in the CEE area.

The IPRI noted its performance in the physical property rights section slid marginally, due to a fall in the level of finance available to those buying real estate in Estonia. Despite this decline, globally the country is still rated 25th in this category.

Meanwhile, the nation also scored well in terms of registering property and the protection of this type of asset.

The legal stability in Estonia is not the only reason to consider investing here, either. The Knight Frank Global House Price Index for the final quarter of 2011 revealed the country experienced the second-highest annual growth in real estate values in the world.

According to the firm's figures, the cost of buying a home in the nation increased by 12.3 per cent, with only Brazil recording more robust growth.