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Over-saturation unlikely in eastern Europe
The emerging property markets in eastern Europe are unlikely to suffer the over-saturation that has blighted Spanish property of late, according to market experts.
While the traditionally popular investment destination of Spain was recently rocked by fears of a property crash - due to over-development - it is improbable that such a situation could occur in growing economies such as Latvia or Estonia.
Simon James, of Property Frontiers, said that the recent problems in Spain - which have now largely subsided - were most likely due to its tourism industry inspiring over-development of property.
"It typically happens more often in a rural or tourist environment than in an urban environment. In a city you don't normally get huge oversupply."
He continued: "If it's a capital city or secondary city the local government has far more interest and control over supply and the local population - they'll have very, very strict planning regulations and zoning control, so demand and supply will be far more balanced.
"Whereas in these tourist areas, the mayors and local government will be far more interested in cashing in on foreign investors."
Latvia's economy has performed superbly recently, with its 11.9 per cent growth rate the highest in the EU.
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