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Bulgaria | Investment Potential 2008
Bulgaria: Investment Potential 2008
The property market of Bulgaria has achieved an incredible rate of growth over the past few years, bolstered by a fast-growing economy and its admission into the EU in January 2007. Bulgaria’s National Statistic Authority noted that property prices have grown by 15% during the first half of 2007, with Knight Frank’s Global House Price Index registering a 27% increase over the past year, and are predicted to grow at the rate witnessed during the Spanish market boom, as the figures all point towards a fantastic opportunity for property investment.
The Knight Frank Global House Price Index, which analyses house price growth worldwide, ranked Bulgaria as having the second highest annual house price growth up to the fourth quarter of 2006, with an incredible growth of 21.6% up to the forth quarter of 2005, and a 13% increase up to the forth quarter of 2006.
"Bulgaria’s National Statistic Authority noted that property prices have grown by 15% during the first half of 2007."
Indeed, Knight Frank's head of residential research Liam Bailey has described Bulgaria as "one of the big winners" in capital growth since 2000. In addition to this, Bulgaria was found to have the second highest level of house price growth throughout Central and South Eastern Europe in 2006, according to the Royal Institute of Chartered Surveyors' 'European Housing Review 2007', figures that have been welcomed by investors in Bulgarian property and that bode extremely well for capital growth over the coming years.
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.