Bulgarian property prices on the up

Bulgaria's beach resorts remain one of the country's most popular property markets Photo credit: JürgenBOT

The market price index of dwellings for the second quarter of 2014 compared to the first quarter of 2014 edged up slightly by 0.3 per cent. The same rate of growth was recorded for year-on-year price increases too.

In the second quarter of 2014 compared to the previous one, rising prices were observed in 13 district centres, led by Burgas, Silistra and Shumen. In 14 district centres and in Sofia district a price decrease was recorded.

The increase follows a significant period of falling property price, a turnaround that has been attributed by expert.bg to improved demand for real estate, which has sped up transactions.

According to website imot.bg, notes Novinite, one-bedroom apartment prices have increased by 2.5 per cent since the start of the year.

The average price of two-bedroom apartments in Sofia is EUR 55,477, adds the site, which is the equivalent of EUR 796 per square meter; a price rise of 0.8 per cent so far this year.

Three-bedroom apartments are sold at an average price of EUR 89,207 for 106 square meters, an increase of 4.1 per cent.

Property Showrooms highlights one other factor in Bulgaria's property recovery: its stock exchange.

"The main difference between Bulgaria and other real estate markets in Eastern Europe that have experienced an increase in prices is that in the capital, real estate projects are easily accessible to the public through vehicles such as Real Estate Investment Trusts (REITs)," explains the site.

As a result, the market is funded significantly by the exchange, which provides a stronger basis than other Eastern European markets that are still struggling to bounce back from the global financial crisis.