01.06.2008

Real Estate Prices in Bulgaria to increase with 15% This Year


Prices of real estate properties in Bulgaria in 2008 are expected to increase by 15%, according to data from the global real estate company ERA.

ERA research shows that the number of real estate deals in Bulgaria in 2007 went up between 4% and 5% to reach a total of about 325 000 with 25% of the deals were entered by foreign buyers.

Bulgaria's annual increase of residential credits is estimated at 62%, while in the European Union the average annual increase of 7%. The most common loans in Bulgaria are for EUR 30 000 with a 25-year repayment period.

ERA research shows that two-room apartments with an area of about 60 square meters continue to be the residential property sector of greatest demand on the Bulgarian market.

ERA's research on Romania demonstrates that the real estate prices there would go up at about the same rate as the salaries, which is a record annual increase of 13%.

Residential property prices in Romania's capital Bucharest went up 27% in 2007 compared to the 2006. They have reached EUR 1500-3000 per square meter. In comparison, the prices in Sofia are EUR 670-3900 per square meter with Romania's inflation rate beeing twice lower than Bulgaria's.


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