Bulgaria breaks property records with bumper year

Bulgaria's growing property market has experienced yet another record breaking year of investment, with around 250,000 homes expected to be sold and finalised by the end of this year.

The figures mark the former Eastern bloc country out as one of the principal growth property markets in Europe. At a time when most countries are seeing the growth of the past few years ebbing away, Bulgaria expects this year to bring a 28 per cent increase on the number of homes sold last year – which had also been a bumper year with 196,000 properties sold.

Bulgaria was also singled out this week by leaders in the real estate market at a major international forum in Vienna. Although investors are set to see prices slightly down this year, properties are still set to raise 15 per cent more year-on-year, making it one of Europe's highest growth markets.

After years of economic struggles in the late 1990s after the country transformed itself into a market economy, Bulgaria has experienced a resurging economic profile. It joined the European Union last year along with nine other countries under strict targets set by the Union. In the past few years, it has seen the economy expand for the first time in years, unemployment fall from highs of nearly 20 per cent and inflation come under control.

Investors are now being encouraged to take advantage of property opportunities while supply is still strong. After an all-time low of property purchases back in 1998 when the number of deals was only 65,179, the market is soaring thanks to foreign investment and the return of the Bulgarian diaspora, who went abroad to seek work during more difficult times.

Bulgaria, together with Romania, holds significant potential in the commercial and holiday real estate sectors, where it is joined by Croatia. These will be the most prospective sectors for the next three years.

Analysts forecast that price growth in the residential sector will slow down and to around 15 per cent next year.