Bulgaria: the best is yet to come

A global real estate company has predicted huge price growth in Bulgaria over the next 6 months…

According to ERA Real Estate, real estate properties in Bulgaria will experience a 15% increase in the prices during the remainder of 2008. ERA’s figures reveal that the number of real estate deals in Bulgaria in 2007 grew between 4% and 5% to reach a total of about 325 000. 25% of the deals were made by foreign buyers.

The ERA research also showed that two-room apartments with an area of about 60 square meters remain the residential property of greatest demand on the Bulgarian market.

Bulgaria's annual increase of the residential credits is estimated at 62%, with an average annual increase of 7.1% in the Eurozone. The most preferred loans in Bulgaria are for EUR 30 000 with a 25-year repayment period.

Sofia starting to evolve

Sofia will undoubtedly be one city to benefit from the increased growth.  According to Property Secrets, Sofia, is experiencing a ‘fractionalisation in the market’, with the emerging class is starting to ‘split and divide’, which is a sign that the property market is ‘starting to evolve’.

A spokesperson for Property Secrets explained: “As the property market is beginning to diversify and we are starting to see areas develop very specific characteristics. This is like the maturing of any property market. There is now a demand from the local market for a particular type of product in different areas of the city.

”A demand is now also emerging for refurb properties in the city Centre. In areas like Lyulin where there a high demand for new builds, I am also seeing the standard of developments rising. There are also more international developers entering the market. This indicates the market is advancing.

“The presence of international developers means the market is developing and following international trends and is also becoming more investor-attractive. It is safe to say that the Sofia property market is now beginning to take shape and take off.