Bulgaria to grow in 2008

Demand is steady and growth is good as the Bulgarian property market continues to provide benefits, but growth will increase further in future months.

According to the latest information released by Bluehouse Equity Fund, located in Sofia, there are various factors that will contribute to Bulgaria's growth expectations going forward.

According to a public television interview with Deyan Kavrukov - who heads Bluehouse Equity Fund - and as reported by the Sofia Echo, "The happy go lucky times of striking exorbitant profits out of property deals on Bulgarian market are gone for two years now."

In Bulgaria, the best locations are those in the residential markets and office sector. Numbers reported show that the average sale price rose by 36 per cent in Bulgaria last year, but rentals posted a smaller increase of just 6 to 7 per cent around the nation. Sofia saw rental gains of 10 per cent.

Various factors influenced this growth, including a demand that remains steady, GDP growth and investment growth, as well as the foreign demand for property within the country.

Other property investors warn that the country is getting more difficult to buy property in. For example, there are new rules and legal requirements to buying here. It is also important for investors to know where to invest. Accordingly, investments in more rural areas are a better choice than in Sofia or other well developed locations. Prices are good, but they are rising. For example, a new cottage currently costs £35,000. Full research on the property and legal title research are the best tools to ensure investors walk away with a safe deal.

The housing market continues to be the strongest area because demand there is continuously high. Foreign and domestic interest here is also high. While most investors believe Bulgaria will continue to grow well into the future, most also expect the country - especially areas like Sofia - to grow at a smaller rate.

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