There could be a rise in the number of property investors heading to the eastern European market in Estonia, as developers take advantage of cheap construction costs.

According to Swedbank, numerous real estate developers are launching residential projects in the country thanks to a combination of stabilisation in the market and low costs.

The head of the bank’s real estate development Ero Viik made the comments at a conference aimed at the bank’s investors and developers, the Baltic Course reported.

"New developments will reach the market at the end of this year or in the first half of next year and hence it could be considered that the supply of flats in 2010 will be rather moderate," he said.

Furthermore, Mr Viik stated that the general consensus of opinion was that prices had begun to stabilise and would not continue to fall any further.

Earlier this year, Swedish banking group SEB predicted that the Estonian economy would experience growth within the next two years, which would put it in a firm position to adopt the euro in the future.

New research has highlighted the key role that cash rich, lifestyle investors are likely to play during the forthcoming year.

According to data released by HomeAway and Savills International, traditional destinations like Italy are likely to benefit from the current economic climate as property investors shy away from buying in long-haul destinations.

Property buyers can capitalise on the tourist attraction that the country holds, with a vast history and culture helping to ensure it is the fifth most visited country in the world.

The research showed that investors have been looking to bolster their property portfolios with European property which has been benefiting from price reductions of up to 30 per cent.

Charles Weston-Baker, head of Savills International, commented: "In 2010, the overseas second home market will be characterised by cash-rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots."

Earlier this year, A Place in the Sun predicted that Italy would be one of the top ten destinations for foreign property investment in 2010.

The US property market is likely to benefit from a glut of reduced properties in tourism hotspots, it has been claimed.

Many Brits may see this as a good opportunity to purchase their dream homes in desirable destinations, with Dan Johnson, director of TheMoveChannel.com, believing that it will act as an "incentive" for many to part with their cash.

Mr Johnson was particularly complimentary about the bargains to be found in Florida, where prices have fallen by as much as 15 per cent in places.

He continued: "When you look at the properties that are available and how far the prices have fallen from their peak of two or three years ago, it is incredible what you can buy for your money over there."

Furthermore, Mr Johnson recommended potential home buyers regarded the current property market as being close to the bottom and as such further significant dips in prices were unlikely to be seen.

Meanwhile, research conducted by online real estate broker ZipRealy found that over 40 per cent of homes in Miami, Fort Lauderdale and Palm Beach were offering price reductions during February.

After a turbulent few months for the Cypriot housing market, news that property sales are beginning to pick up is likely to be welcomed by investors.

The latest statistics, compiled by the island’s Lands and Surveys Department, demonstrate an increase in volumes of around 30 per cent in February compared with the same month last year.

Solomon Kourouklides, president of the Cyprus Real Estate Agents’ Association, explained that the growth was probably a result of more opportunities opening up for buyers in the marketplace.

Many new purchasers are buying up property from individuals who are struggling with loan payments.

Meanwhile, Mr Kourouklides made his predictions for the coming year: "If the economic parameters remain the same, we believe that the market will remain at the save level as in 2009."

This is the second month in a row that property sales posted an increase, as in January the Land and Surveys Department reported that there had been a 24 per cent increase in house sales compared with the same period in 2009.

France could benefit from a massive influx of foreign property investment after its government decided to implement the country’s first ever trust law.

A report on Overseas Property Professional has explained that the new guidelines mean that foreign pension trustees will now be allowed to invest in leaseback property within the country.

Furthermore, wealthy investors can now avoid heavy taxation when using offshore funds for property transactions.

Investors from tax havens such as Jersey, Guernsey, the Isle of Man, the British Virgin Islands and the Cayman Islands will now be exempt from the three per cent penalty that has been applied in past years.

David Anderson, of law and tax firm Sykes Anderson, told OPP that this could represent one of the largest developments in overseas property of the last ten years.

"We’re seeing quite a run of high net worth individuals with offshore funds focusing on trophy properties and asset classes that can’t be bought in the UK, such as vineyards and ski lodges, as well as prime agricultural land."

A survey conducted by HomeAway and Savills recently claimed that France was set to become an investment hotspot during 2010.