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Bulgarian Property Market Turnover In 2007 Reached 11bn Euro

Property market was the absolute economic leader for Bulgaria's economy in 2007 with a record-breaking turnover of 11.36 billion euro, Yavlena real estate agency data showed.

The sum was the total value of deals with land and buildings in the country over the period.

In 2006, turnover in the sector was close to nine billion euro, Pari daily said.

According to experts, the increase in the number of property deals and in the property prices was the most accurate measure for the real estate market situation.

Yavlena said they expected price increase of 35 per cent for 2007 in residential properties. By September 2007, it had reached 32 per cent.

Company manager Strahil Ivanov said the pace of price increase was twice faster than in 2006, thanks to a good mortgage market, relatively high annual revenue of properties and the weak impact of the world financial crisis in Bulgaria.

The number of property deals in 2007 was expected to reach 292 000, Ivanov said.

The property market stimulated construction development, Pari said. The sector ranks among the fastest developing in Bulgaria in 2007 with a growth of 15 per cent on annual basis.

According to the Bulgarian Construction Chamber, the sector turnover would reach 11 billion leva.

Bulgarian Entrepreneural Chamber in Building president Nikolin Gavrailov said that the lack of modern apartments, retail and administrative buildings caused the construction boom. The investment growth in tourism, production and the need for a modern infrastructure also stimulated construction, he said.

Construction sector growth was expected to be between 12 and 16 per cent annually until 2010, he said.