Residential Property Prices In Bulgaria Continue To Rise - Sophia Echo

House prices for the second half of the year are expected to jump between eight and 15 per cent, real estate agency Foros forecast, as quoted by website investor.bg.For the first six months of 2008, a significant increase has been registered in Rousse, by 24 per cent, which brings the Danube city closer to the price range in Sofia and Varna. In the Bulgarian capital, residential property prices have gone up by nine per cent, while housing in Bourgas has become more expensive by six per cent and by seven per cent in Varna, respectively. In Plovdiv residences are selling for 20 per cent more than the last year, whereas in Veliko Turnovo is close to posting a 13 per cent hike.Foros also estimated in their forecasts that demand for residential property until the end of 2008 will remain steady as the most popular among buyers are gated and semi-gated residential communities. People, however, prefer to buy in the periphery of the big cities where property prices are still managed low, the agency was quoted as saying.Two-bedroom flats hold the top of the list for most-desirable residence, but spacious three- and four-bedroom flats are becoming more appealing in recent months, according to Foros. Buying off plan is a tendency that is beginning to significantly decline, the brokers have said.According to company's compiled data, at the end of June, Bulgarian residential property offered a return on investment index of close to six per cent, which equals to the average rate in Europe. In Sofia the return rate also comes to six per cent as the highest nine per cent in the country are registered in Veliko Turnovo.Foros indicated earlier that for the first six months of the year rents are also on the rise as demand is for flats in luxurious new buildings with expensive furnishing.