Real Estate Sector

The real estate sector in Bulgaria reached incredible heights in 2004 and 2005, influenced by the interest among foreigners in buying property in this country, and by increased purchasing power of Bulgarians due to the low interest rates of the mortgage loans offered by the banks. Bulgaria is a country with extremely low real estate and building plot prices compared with the EU states.

The real estate prices rose more than 20 per cent in 2004 and more than 30 per cent in 2005, and are expected to increase by an annual average of 10 to 15 per cent for the next few years.

In 1994 The National Real Property Association (NRPA) was established. For the first time a Real Estate Market Index was published in October 2002, which in March 2003 reached 104.37. The next figure represents the Real Estate Market Index (REMI) indicating the increase in property sales in Bulgaria.

Real estate deals reached a record high in 2004, according to the statistics. Most of the buyers are from the UK. According to the BBC, some of the UK-based banks even lent loans for acquiring immovable in Bulgaria.

The greatest interest shown is in villas and land at the Northern Black seaside. UK buyers are focusing on properties in Sunny Beach resort, in village of Gurkovo, in the coastal town Kavarna, in Kableshkovo, St. Vlas and Elenite. In the inner part of the country the foreign buyers prefer properties near Veliko Tyrnovo town, village of Stefanovo, Ustrem and near Topolovgrad.