Sofia Property Bulgaria

With a year of EU membership firmly under its belt, Bulgaria emerges into 2008 more positive for the experience. Strong economic growth, rising house prices and a booming real estate industry are just some of rewards this eastern European country and in particular capital city Sofia are reaping at present.

Of the 5.3 billion euro of foreign direct investment (FDI) received in Bulgaria in 2007 real estate and tourism made up 60 per cent of 2007’s overall figure. Benefiting substantially from inward investment is the Bulgarian capital city of Sofia where the focus on business and commercial property with shopping malls and industrial centres taking centre stage. Sofia is the 6th most attractive destination for expansion of European retail chains over the next five years.

Sofia property in particular should see steady growth as it sees property demand ripple out through to its suburbs and property with good characteristics should continue to see gains as wealthier individuals seeks desirable properties. According to statistics from Bulgaria’s National Statistics Institute (NSI), Sofia was still the most expensive place to buy real estate, with an average price of 1813.17 leva a sq m. Since joining the European Union, the increased demand for luxury products including real estate demonstrates that confidence in the country has grown and investors are willing to risk more on a Bulgarian property investment.

Despite the recent credit crisis and its effect on Europe in conjunction with claims of residential oversupply in coastal and winter sports zones, Bulgaria claimed the prime top spot in Knight Franks Global Price Index in December. With house prices increasing on average 28.9% in 2007, it is widely expected that house prices are to continue set increasing throughout 2008 although at slower pace than in 2007.