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Property Deals Worth 10 Billion Euro Completed In Bulgaria

The actual value of property deals completed in Bulgaria for 2006 is expected to reach between 9.5 and 10 billion euro, National Real Property Association president Orlin Vladikov said.

The number of property deals in the country in 2006 would probably be known by mid-January 2007, he said.

According to initial predictions the number of deals will reach 280 000. The figure represents an increase of 22 to 25 per cent, as compared to the number of deals completed the previous year.

Official notarial act data showed that property deals in Bulgaria totaled nearly five billion euro, 24 Chassa daily said.

The sum was nearly half billion euro higher than the figures for 2005.

Experts said that the Bulgarian property market was very dynamic in December, as a result of Bulgaria's EU accession which was expected to lead to a price hike in 2007.

More reasons were the increase in the price of tax evaluations of property and a new system of property deals taxation introduced in Bulgaria, 24 Chassa said. Property deals would be taxed including value-added tax (VAT).

The number of the deals completed in December was from two to three times higher than the figures for 2005.

Real estate agents said that market developments did not stand behind the price hike. The property market would probably stay calm in 2007 and prices would raise by only eight to 15 per cent.