Bulgarian property prices rise over 9% in first quarter of 2007

In its first three months as an EU member, Bulgaria has seen average residential property prices rise by over 9%. The Eastern European hotspot has seen average prices rise from 904 lev sq.m in the first quarter of 2006 to a high of 988.2 leva sq.m according to data from the National Statistical Institute (NSI).

When compared to the Brit’s favourite second home destination, Spain which has in fact seen a fall of 1.8% (€247,816 to €243,333, source kyero.com) in average property prices in the same period it is clear that Bulgaria is still enjoying a boom time post EU accession.

Tahir Ali, MD of Bulgaria Revealed, comments, “Being an EU member has increased the confidence of both investors and holiday home buyers. Nearly 30% of all property sales in Bulgaria are made to foreign nationals and it is not only the British who are buying, the Irish, the Germans, the Italians and the Russians are also realising this market’s potential.”

According to the NSI, the capital Sofia saw property prices rise by over 14% with residential districts such as Lyulin, Mladost and Nadezhda seeing significant increases. Sofia has become popular with investors due to the strong demand for high quality western style rental accommodation both from the local domestic population and foreign workers. Property prices remain relatively low with 1 bedroom apartments in the Mount View development located just minutes from the Sofia Business Park and Mount Vitosha available from just £81,675 / €121,417 through Bulgaria Revealed.

In addition to Sofia, spa towns located south in the Pirin and Rila mountains are also seeing increased interest. At present Bulgaria only uses 5% of the potential of its mineral springs and spa tourism is currently the focus of the State Agency for Tourism. According to a first quarter report by Colliers International more than 18,000 holiday homes were added to the mountain resorts in 2006 offering buyers a wide choice. 1 and 2 bedroom apartments, such as those at the Balmoral Spa and Residence in Bansko, are the most sought after property types. Located just 250m from the Gondola ski lift, with full spa facilities within the resort development and a property management and rental package of 6.5% of the purchase price for two years*, starting at the 2009/2010 season all for just £42,721 / €62,950 it’s not hard to see the attraction.

Some of those who purchased off-plan pre EU accession are already seeing the value of their properties increase. Mark and Wendy Davis from Plymouth for example purchased a 2 bedroom “Ephrosina” apartment on the new Nicklaus Design PGA Golf Course and Country Club in Dolna Banya in July 2006 through Bulgaria Revealed. Being the only PGA course in Bulgaria and located only minutes from the popular ski resort of Borovets, Mark felt that this would be an ideal opportunity to combine his love of golf with an investment for the future. Mark and his wife bought the property for €80,100 and are delighted to learn that it has already gone up in value to €108,000.

In addition to rising property prices, Bulgaria is expecting more tourists than ever before in 2007. 5.6 million foreign visitors are expected, an 8.2% increase compared to 2006 according to the Institute for Analysis and Tourism Evaluation. The majority will visit over the summer months and focus will be on the costal resorts. The NSI data reveals that property prices on the Black Sea coast, in Varna in particular, have also risen by 16% in 2007’s first quarter despite concerns about overdevelopment. Beachfront resorts such as the Aheloy, just 15 minutes from Bourgas, are in high demand as they offer apartment style accommodation with all the facilities holiday makers would expect such as swimming pools, restaurants, bars, shops and children’s play areas. Studio apartments are available from just £30,000 / €45,400 through Bulgaria Revealed.

Tahir Ali comments, “The continued rise in property prices reflects Bulgaria’s positive situation. The economy is strong, foreign direct investment high and EU accession has really opened up the country. The first quarter of 2006 saw prices rise by 4.7% compared to the first quarter of 2005 and now we see rises of 9.3% in the first quarter of 2007. There are some excellent opportunities available for both pure investors and second home purchasers and now is the time to act.”

For more information about purchasing property in Bulgaria, visit bulgariarevealed.com.

* Rental package available only for the first 5 properties reserved through Bulgaria Revealed.