British property investors continue to opt for the old favourite locations of Cyprus, France and Spain to invest their cash, according to new research.

The three European nations, old friends of British holiday-home seekers, beat off stiff competition from emerging markets in the Eastern Bloc to become the three top countries for currency enquiries to foreign exchange firm HIFX.

In the company's monthly survey of global property hotspots, Cyprus, France and Spain made up over half of all its currency transactions last month.

Mark Bodega, marketing director of currency specialists HiFX, commented: "Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites Cyprus, France and Spain are still the first choice for British buyers looking for a holiday home or retirement home.

"With the markets in these countries having slowed down over the last 12 months, we are seeing some really good bargains coming up and it seems that many canny Brits have also spotted this and are beginning to return to these traditional overseas markets in increasing numbers."

Although he admitted that the markets in these countries – especially Spain – had cooled of late, Mr Bodega said that traditionalists were now looking at "lesser known costas and inland amongst the olive groves", as opposed to eastern Europe.

Indeed previously touted hotspots Bulgaria, Turkey and Morocco actually saw their proportions of currency enquiries decrease in November, while those in Cape Verde and Dubai remained the same as the previous month.

In a statement, HIFX said that although quick returns can be attained in emerging markets, investors "should be careful as the fad of these countries could disappear just as quickly as they have appeared".

The monthly decline of interest in the emerging markets may be linked to homeowners' increasing affordability constraints due to the recent rise in interest rates, causing overseas property to bank on the more stable markets of Cyprus, France and Spain.

With an array of regular cheap flights to a comprehensive list of destinations, Brits are turning to these countries due to the ease of access and the security of stable house price inflation.

Furthermore, houses in Cyprus, France and Spain are much easier to rent due to their inherently strong tourist markets and high regard among UK residents.

The large ex-pat community in these countries means that settling in is not too much of a culture shock for retirees, who make up a large proportion of the overseas property market.