Though Bulgaria offers cheap property, real estate prices in the country are constantly on the rise, a lengthy article of the International Herald Tribune reads. The author tries to predict whether the trend will continue in the future.
The upward trend for property prices has been valid for the past 12 years. In 2005 a sq m of residential property became 36.6 per cent more expensive, data from the National Statistic Institute shows.
Despite the price increases, real estate in Bulgaria remains cheaper than property in Central European countries. A sq m in Sofia sells for 600 euro on the average, compared to the 750 euro in Slovakia's capital or the 850 euro in Bucharest.
These lower prices continue attracting Western Europeans interested in property purchase, the IHT reports. The majority is looking for vacation homes, fewer search for investment opportunities.
Foreigners are involved in 23 per cent of the property deals concluded in Bulgaria in 2005. The total number of such transactions reached 220 000 for the past year, the IHT reported.
Interest remains high also because of Bulgaria's expected EU entry. Construction costs and respectively prices would likely rice once the country joins the union.