Sofia Housing Prices Up 14.3% in 1st Quarter of 2007!

According to the National Statistical Institute of Bulgaria, housing prices in the city of Sofia increased 14.3% in the first quarter of 2007.  Nationally, housing prices in Bulgaria increased on average 9.2% during the first three months of this year. 

Bulgaria has been experiencing increased investor interest in the past couple of years in anticipation of its entrance in the European community, which became effective on January 1st 2007.  Housing prices have been rising in the past two years as a result of this interest, which had a positive effect not only on the real estate market but also on the whole economy. 

The Bulgarian economy has been growng rapidly in 2005 and 2006 with real GDP growth at 5-6%. Analysts predict that real GDP growth in 2007 will surpass 6%.  Colliers International Bulgaria predicts that commercial real estate prices will rise 300 percent in the next three to five years.  Some local brokers are not as bullish about future price increases, as they argue that the positive effect of Bulgaria's entrance in the European community had already had its effect, manifested in the run up in real estate prices in the last two years. Some analysts, including the author, argue that Bulgaria's real estate prices have yet still a considerable run up ahead in the next five years as housing/property prices and rents in Bulgaria are considerably below the levels prevailing in other European countries.

Source: http://www.property-investing.org/Bulgaria.html