With ever greater numbers of Brits choosing privately owned self catering villas in preference to Hotel accommodation for their annual holidays, many overseas property investors are expecting 2007 to be a very profitable year.

Leading industry analyst Mintel have predicted that self-catering properties will represent over 62% of holidays abroad in 2007, with a significant increase in the number of holiday makers who use the internet to tailor-make their holiday. This trend is expected to increase, therefore purchasing a property abroad now in a favourite holiday destination could prove to be a very clever investment.

As a result of the continued escalation of UK house prices, many potential buyers who would have traditionally stayed in the UK property market are now looking to invest in property abroad, to either add to their existing property portfolio or, in some cases as a first step on to the housing ladder. Many overseas property specialists and estate agents have reported an increase in business for January significantly higher than the same time last year.

David Bexon, Managing Director of SmartNewHomes.com said: “For those who want to choose from a greater variety of properties and who want privacy and their own space, privately owned villas are proving increasingly popular, and rentals can be very competitively priced.

“As more people look to build each element of their holiday online, using an array of sites to compare prices and the range of accommodation available, there has been a noted shift away from package holidays – and this is good news for those looking to invest in property abroad.

“On our site, you can currently find a new, three bedroom villa in Cyprus for £130,000 – a fraction of what you’d pay if you were to buy a similar sized property in the UK. By buying new, potential investors remove the need for any structural or even superficial work after purchase, which could take time and add additional costs, enabling them to see a return on their investment through holiday rentals almost straight away.”