Bulgarian House Prices
The National Statistical Institute reported in January that the average sales price per square meter for residential properties in Bulgarian cities had gone up by 36.6% on the previous year, Bulgarian agency Industry Watch recently claimed that the market will stabilize this year 2006. . While the price of Bulgarian stock, measured through the Bulgarian Stock Exchange (Sofia blue-chip index SOFIX) increased by 32% in 2005, the average prices of housing properties went up by only 21.6%. Industry Watch concluded that investment in shares of companies traded on the stock exchange has become more attractive to investors.
The cities appear to offer the best prospects for developers, with two thirds of all construction permits in the one-year period reviewed by Industry Watch issued in the country's five largest cities. Bourgas came out on top, followed by capital Sofia and Varna for apartment building permits. Speculative buyers are still driving demand and growth. The report concludes that Bourgas has the most over-valued real estate (with prices only 8% below those in the capital) while the property markets in Shoumen, Rousse, Plovdiv and Pleven are undervalued. Extract from article in May 06 OPP