American weekly Businessweek writes that signs of recovery of the real estate markets, after the serious crisis which saw prices in Spain go down by 35 per cent, are returning investors to hot markets such as Croatia and Montenegro.

While the economic downturn has left many homeowners struggling to keep up with their mortgage payments, the recession has opened up a bonanza of cut-price deals for well-funded property buyers, writes Businessweekly.

Croatia and Montenegro are among the most lucrative investment destinations, despite the predictions that the tourist season in both countries would fail to meet the set profit targets.

The weekly writes that Croatian city of Dubrovnik has undergone a spate of luxury development, and real estate prices jumped threefold before the global downturn started to take its toll.

Markets of Asia and the Middle Ease represent a bigger risk, and the weekly reminds that prices in Dubai decreased by 25 per cent, which is why the city has become more available to a wider circle of investors.