2 of 10
Annual increase: 16.9%

Want to become a resident of the European Union? Just buy property in this Baltic State.

During the global recession, Latvia saw the world's largest fall in home prices, dropping an incredible 70%. But the market has bounced back in a big way, partly driven by a fairly new law (effective July 2010) that gives EU residency rights to non-EU citizens who buy property worth at least 70,000 euros (or $93,000) or invest in a business here.

That doesn't mean foreign investors are permitted to work in the rest of Europe. However, property owners can roam freely within Germany, Greece and 23 other countries that make up the EU's Schengen area.

NEXT: Israel
Last updated April 28 2011: 12:31 PM ET
Canada has been held up as a picture-perfect economic example, but once rates start to rise, things could get ugly fast for our northern neighbors. More
You better believe it -- the real estate market is back. It's time to buy again, and here are the 10 cities with the most affordable homes, according to a new report from Deutsche Bank. More
I'm all for rationalization of the ridiculously complex real estate transaction process. But Zillow hasn't provided the answer. More