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During these tense times, both property investors and clients alike are looking overseas with a view to purchasing property in more desirable and lucrative climes.

Emerging markets, such as Turkish-controlled northern Cyprus, are growing in popularity as investors look to capitalise on excellent capital growth as reunification moves a step closer and tourism soars.

The last year has seen a recent upsurge in interest from British buyers. This looks set to continue, especially in light of the credit turmoil in the UK and in comparison to the UK property market, the Cypriot market is booming.

Average property prices in Cyprus rose by 19.2 per cent in 2007 according to the BuySell home price index, and look set to rise further in the coming years.

Those looking to invest in the Cypriot property market can expect to pay around £65,000 for a one-bedroom apartment, £80,000 for a two-bedroom apartment and from £150,000 for a villa through Property International.

The prices include a designer furniture package and a two-year 6 per cent net rental guarantee. In contrast, prices in southern Cyprus are at least double.

Purchasing homes overseas is an increasingly attractive option for many. Almost 4,000 Britons are moving abroad each week, according to the Office of National Statistics.

This trend is only set to continue, under a backdrop of growing dis-satisfaction with life in Britain, as people look to escape the UK's turbulent economy.

The property market is also being boosted by the growing retirement market. For those retiring to northern Cyprus there are tax advantages.

North Cyprus removed inheritance tax in 2006 and furthermore every individual or household is exempt of capital gains tax once in their lifetime on the sale of one property.

Furthermore, the property industry is also benefiting from the improved infrastructure.

Since the Turkish Cypriots voted in favour of the United Nations backed reunification of the country, northern Cyprus has received €400m (£316m) economic aid for improving infrastructure.

The government is also actively encouraging the development of the region as a fiscal and business hub.

Russell Price is group chief executive of Property International