If you’re looking to invest in foreign property, Cambodia might not be the first place that springs to mind – but perhaps it should. According to some property experts, this south-east Asian country could have a lot to offer the discerning investor.

Cambodia is regarded as one of the world’s emerging property markets. This means that interest in property is beginning to grow and is showing signs of great potential, but it’s still at the early stages and prices still reflect this. A one to two bedroomed property in the popular French Quarter of the capital city of Phnom Penh, for example, costs from as little as £29,150.

Over the past 40 years, there have been many changes in Cambodia, not least a massive increase in the population. The political situation has stabilised, the economy is already doing well with the aid of foreign investment and tourism in Cambodia is increasing. In fact, predictions suggest that by the year 2010, there will be over three million tourists a year visiting the country and providing an annual income of $2.35 billion USD.

There are international airports at Phnom Penh and Siem Reap and a new international airport is underway at Sihanoukville, which is expected to boost tourism even further.

For savvy buyers, there are already good rental opportunities in the capital city and, if the early indications prove correct, there could be profits to be made.

At this time of year, the predictions for the best foreign property buys for the coming year begin to roll in. So where are the experts suggesting we buy in 2008?

Martin Bowen, from Profile Europe (UK) says his top three favourites for 2008 are Dubai, Portugal and India.

Interest in property in Dubai has been increasing over the last few years and there are numerous new and luxury developments taking place. According to Martin, the property picture is looking incredibly rosy. ‘Investors into this market will see tremendous capital growth towards the end of this decade. They can rest assured that the rental market in a city – and one that expects upwards of 15 million tourists each year – will be one of the most profitable ever,” he says.

Portugal may be a surprise prediction to some people, as it’s a long established market and prices in some areas are relatively high. However, Martin believes that Portugal has “come into its own” and is on the “crest of a wave which will see regions increase dramatically over the next five years.”

As for India, where property prices are low, early indications suggest things could start to improve. “I predict the Indian property market will start to move forward in the New Year,” says Martin. “Infrastructure and a financial awareness is now the driving force and I anticipate that this market will grow significantly over the next 10 years.”

So these are the views of one expert, but where do you think the profits are to be made in 2008?

Buy-to-let can provide that beneficial long term investment - unlike shares which are up and down quicker than you can click your fingers. Part of the best asset class for the last five years, investors have long since realised the benefits of property over shares; and despite the negative press in 2006 buy-to-let is here to stay. The supposed forthcoming property market crash has put many people off buying property for themselves. It’s great news for investors though as individuals priced out of the property market are looking to let for longer.

The buy-to-let market is set to inflate as rental rates are continuing to increase – for many investors it is just a matter of choosing which kind of property to invest in. The increase in demand for rental properties means that, according to recent reports, buy-to-let is set to ‘prop up’ the property market. The influx of migrants and young workers unable to get on the property ladder are choosing to rent for the foreseeable future, as it is often more financially viable, and they have the added bonus of a landlord to take care of any repairs.

Maintenance can be the biggest concern for many landlords as older properties usually require more frequent attention. Buying off plan on the other hand can provide an excellent investment opportunity as new builds come complete with a structural guarantee for added assurance. Buying off plan is often perceived to be a risky business especially as a lot of localities are already over subscribed, however with strong research into up and coming areas, off plan property can alleviate the maintenance issues landlords want to avoid.

Remarkably – in the fickle property market - buy-to-let is a growth industry and can provide capital assets in the long term even if the day to day costs are not covered in the first instance. Unfortunately for those looking to make a quick buck, buy-to-let investment is not just for Christmas – investment commentators suggest a 10 year (minimum) venture from the outset. One thing is for sure; in this market it is important to do your research.