Following the impressive annual capital gains averaging 30% in recent years, Bulgaria’s property market’s more realistic annual growth rate of 15% up to the third quarter of 2006 sets the pattern for more predictable and sustainable long-term investment. The country boasts low prices despite its admission into the EU in January this year. Upon joining the EU, the cities of Warsaw (Poland), Prague (Czech Republic) and Bratislava (Slovakia) climbed more than 10 places in the ‘Mercer Cost of Living’ survey. Bulgarian property remains up to 40% lower priced than in these example countries. However, prices are predicted to rise accordingly, as traditionally occurs following accession to the EU, assuring property investors of significant capital growth and a secure investment.

Bulgaria: Key Facts

Following the rapid price increases seen in recent years, property prices have continued to rise by 16% across the country (National Statistical Office) and 9.7% in Sofia during 2006. The average price per square meter is now €1,042.

As a country, average rental yields are 10.56%, one of the highest in Europe. In central Sofia, gross property rental yields are between 10% and 10.8%, with lower yields of between 7.7% and 9.4% earned in the suburbs. Assetz, a UK property adviser, attributed a massive earning potential of 12% rental yields, placing Bulgaria as number one in the world.