Bulgarian property prices increased almost 9% in Q4 from Q3 2007. The annual price increased were just under 35%.The latest research from Industry Watch property group highlights the strong growth in the Bulgaria property market. The research agrees with statistics released by real estate consultancy Knight Frank which shows that the Bulgaria real estate market was one of the fastest growing in the word during 2007. The company reports that prices have increased by 34% on average over the last 2 years. They expect however that price increases will reduce to just 15% or 2008.
Industry Watch reported that smaller regional cities showed strong price growth but gains in Sofia and Varna were more modest. From the six biggest cities in Bulgaria, Ruse posted the biggest quarterly increase of almost 15%. Sofia property is the area most sensitive to the effects of mortgage lending. Real estate analysts expect that a boom in lending growth will drive demand for property in the mid-price range. Any market adjustment will result in fewer Bulgaria property deals rather than a price decline. Sofia property prices continue to be significantly more expensive per square meter than those in other regional cities. Real estate prices in the capital city are about 40% higher than in Plovdiv the second largest city.