Montenegro remains an attractive country for long-term investments, overseas property experts have claimed, with the market benefiting from an ideal combination of relative stability and low inflation.

According to the international real estate agency Dream Property Montenegro, around half of all foreign buyers in the Balkan country are buy-to-let investors, with the fact it switched to the euro in 2002, making it particularly attractive to the Irish as well as to Britons keen to take advantage of the stability of the currency.

In addition, investors are keen to benefit from the growing popularity of Montenegro as a tourist destination, which ahs taken off since the split from Serbia in 2006.

"Most [people] arrive with the plan to buy an investment property that they will sell within a short time frame," said Andrea Marston, a spokesperson for Dream Property Montenegro.

"However, the consensus seems to be that Montenegro has a lot more to offer than they thought and most opt to hold onto the property as a holiday home."

Earlier this year, the Bank of Scotland reported that 198,000 British citizens had moved out of the UK during 2005, with Eastern Europe becoming increasingly popular as a destination.