Many investors believed that both Romania and Bulgaria's property market could cash in on the sort of price increases experienced in the real estate sectors of earlier entrants such as the Czech Republic and Hungary.

In last month this active investor interest was fuelled by media hype and met by keen property development activity. More and more overseas buyers want to buy up property stock started active cheap residential property markets in both nations prior to European Union entry, where previously there was no active market to be generated purely of the back of limited local interest. A factor to consider relating to EU accession and real estate in Bulgaria and Romania is the legislation and laws associated with buying, selling and owning property. Both countries have had to refine property law and make amendments to legislation to fall in line with property laws commonly accepted throughout the rest of the EU. Over time the property buying processes in each country have improved and there are long term plans for the reduction of restrictions and bureaucracy that foreign buyers encounter in both, Romania and Bulgaria. On-going improvements are required to the mortgage market even in Bulgaria where it has already developed well.

The property prices in some areas of Bulgaria have actually peaked. For some time last in the most overdeveloped parts of the coast mid-range property prices have remained stagnant. Another resort in danger of over-development and reduced tourism appeal (and it is tourism appeal fuelling property investor interest for the large part) are Sunny Beach and in the mountain resort Bansko. But in the other part of Bulgaria there is still room for property price growth. For example in Sofia demand for property is set to increase as long as Bulgaria maintains its determination to attract foreign direct investment into various employment sectors.

Property prices in Romania have got a long period of growth ahead, but an investor seeking speculative short term returns in either market is approaching the property investment potential in both countries. The case 'location' is key to the viability of a property investment - whether an investor is seeking decent rental yields or simple capital growth. To make money over the long term you will buy decent stock in popular locations in either country. Bulgaria and Romania will remain of interest mainly to lesser experienced investment property buyers. It is a well known fact that both countries offer cheap property in Europe and easy accessibility as well as massive tourism potential. So an investor who bases his due diligence on what others are saying will flock to Bulgaria and Romania for at least a short term. Investors have to be realistic about the tourism appeal of the location they are considering, and also look to the market they will be targeting their properties to for returns and buy property stock carefully and wisely.

Bulgaria is very attractive for overseas investment inheres in its residential property market prior to European Union entry. Early investors and developers entered Bulgaria prior Europe entry as they wanted to cash in on potential returns that they had witnessed being derived from the likes of the Czech Republic when it joined the EU. Only those seeking a second home or who lacked confidence to commit to the market before EU entry was a given will push demand strongly.

In Romania the situation is quite different. It is lagging behind Bulgaria because it is considered a less popular holiday location and it had spent less on infrastructure improvement. But now Romania begin a campaign of positive promotion and the government works to make the buying process safer and more attractive, active interest could remain subdued for the time being.

Thanks to European Union accession now owning and investing in property in Bulgaria and Romania will improve - improvements in infrastructure and improvements in the safety of buying. In the next 10 years infrastructure improvements are expected to be significant in Bulgaria and Romania. Similarly both countries will comply with the EU laws regarding property and standards adhered to by the rest of Europe.