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In a survey of 91 of the world’s major cities, Manila, capital of the Philippines, achieved the fourth highest annual property investment yield, according to the website-based Global Property Guide.

The study of prime city centre apartments showed that Manila provided yields of 10.89 percent.

In contrast most European cities achieved less than five percent and expensive regional rivals, Hong Kong and Singapore, also performed badly at less than four percent.

The survey, based on figures for the third quarter of 2008, also showed a dramatic slow down or decline in annual price rises across the world, signalling the end of almost a decade of synchronous global growth – an event unprecedented in economic history.

John Scott, from Philippines property specialist Asset Property Brokers, said: “Against a background of uninteresting savings rates, stuttering stock markets and poorly performing property prices, high yielding markets are good news for investors.

“The credit crunch means that we are unlikely to return to high rates of capital growth for quite some time so that yield is now the most important reason for investing.

“But it is not only city centre apartments that perform well. The Philippines’ low costs and attractions are providing it with a competitive edge in tourism, and high yields for well located and managed apart-hotel projects. An example is the Blue Coral Resort and Spa, which will give yields up to 20.9 percent.”

From January to October 2008 2.6 million overseas tourists visited the archipelago, an increase of four percent compared to the previous year, according to Philippines’ government figures.

Asset Property Brokers has properties available at Blue Coral Resort and Spa, Mactan Island, the Philippines.

The five star beach resort offers 140 properties, ranging from £63,425 studios to £182,750 three-bedroom poolside villas.

The resort has a guaranteed 80 percent occupancy level, on a rolling five year contract, providing returns of 14.4 percent to 20.9 percent, depending on the property type. Guaranteed 60 percent non-status developer finance is available.  Owners are entitled to 20 percent or around ten weeks’ free stay a year.