Bulgaria shrugs off the credit crunch

Bulgaria property investors have a new reason to be cheerful…

According to a new report by Bulgarian economic think-tank Industry Watch, Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March 2008.

The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels.

According to Industry Watch the credit crunch in the United States has had a negligible impact on the property market in Bulgaria, but negative influences have not been ruled out in the long term.

Industry Watch forecasts a slow-down in the flow of foreign investments in real estate.  Average annual growth in sale prices is set at 13-14% in the next five years.