Property prices in Bulgaria grow by 25%

Cheap Bulgarian properties continue to attract investors

The prices of real estate properties in Bulgaria have risen by over 25% since the beginning of 2007, show latest statistical information. The main reasons for the increase are the recent entry of the country in the European Union and the large foreign investments in the country.

Bulgaria’s real estate market is still the one offering cheapest property prices in the whole EU, if not Europe. This has drawn much investor’s interest in the country, by many foreign citizens, especially Brits, Greeks, Russians, and Germans. Investors are attracted to the region because of the mild climate and holiday opportunities both in beach and ski resorts.

Bulgaria specializes mainly in tourism and the government and large tourist agents invest a lot in world-wide advertising of the country’s attractiveness. There are many archeological findings in the recent years, such as the ancient mythological town of Perperikon, which drive tourists from all part of the globe to the country. This makes the property prices grow even more because of the renting incomes from tourists.

Some journalists predicted that the drop in US and UK real estate markets will affect the Bulgarian property market, which does not seem to have taken effect. Real estate analysts say that most probably the Bulgarian property prices growth will be slowed to 15-18% in the 2008, which still presents a very profitable investment.