Small, relatively well off and with a property market that is perceived as difficult to access, tiny Slovenia is starting to catch the eye of property investors, writes Mark Russell.

There are several good reasons:

• Ultra low level of mortgage penetration
• Adoption of the euro in January 2007, simplifying access to the market
• Tax reform that will simplify and cut taxes

Imagine a charming destination only 2¼ hours flying time from London, where English is widely spoken, the tourism sector is growing steadily and where there is a confident expectation that the property market may well take off in 2007.

Welcome to Slovenia!

Long overlooked by property investors, and with good reason - mortgages for foreigners were impossible, the buying process was complicated, prices started from a high base and growth was lacklustre - Slovenia is now beginning to roll back the negatives.