House prices continue to boom in Bulgaria

Tuesday, 28, Aug 2007 04:33

House prices in Bulgaria have risen by 27 per cent since last year, with further increases expected over the coming months.

Quest Bulgaria, an English language magazine for those looking to buy or rent in Bulgaria, forecasts a further 20 per cent increase in average prices before the end of the year.

Demand in the country has shifted inland away from costal resorts toward urban and rural areas.

However the region around Sofia, the capital, remains relatively inexpensive. Property here costs an average of £152 per square meter, compared to £347 nationally.

"Those buying property in the countryside are buying attractive village homes," said Chris Goodall, managing director of Quest Bulgaria.

"Most of them are foreigners, in general early retirees and families who want to own property and enjoy the low cost of living, along with affluent Bulgarians from Sofia and other cities who are looking for weekend or holiday homes in the best rural areas."

Demand has been driven by local prosperity and an evolving Bulgarian middle-class in search of property.

Furthermore, foreign investment into the country has continued to force property prices higher in certain areas.

And although the trend mirrors that of new entrants to the European Union, prices are still an average of 40 per cent cheaper in Bulgaria than the Czech Republic, Poland or Slovenia.