Bulgaria Takes the Lead in Property Price Rise

2007-12-10   |  Trud Daily, vol. 338, 9.12.2007

Bulgaria reached the prestigious first place in the world in terms of real estate prices increase thus ousting the traditional leader Lithuania from the top.

At the end of September the prices in the Balkan country had accelerated by 30.6% on an annual basis, a new ranking of the international real estate company Knight Frank shows. For one year Bulgaria climbed seven positions in the global index despite the concerns of holiday apartment oversupply in the area of Bansko and some Black Sea resorts, the analysis says.

It’s a fact that the abundance of offers retained the prices in Bulgarian resorts but this is compensated by the tangible increase of the prices of houses and apartments in the big cities. The following fact reveals the speculative growth of real estate prices in the capital Sofia. A year ago a construction developer offered a key-ready apartment of 66 sq.m. in a prestigious quarter for about 40,000 euro. Now the same investor is building another residential block next door but for an apartment of the same area only with ground coat and putty he already wants almost double the price.

An important contribution to Bulgaria’s head-spinning climb has the real estate price drop in the Baltic states. Lithuania, which was in the lead in the last couple of years, dropped out of the top ten countries. This is mainly due to the decrease in the prices in capital Riga.

The real estate price growth has slowed down in Estonia as well, as the biggest price drop is witnessed in the off-plan properties. Meanwhile, rents in Estonia are going up from which we can assume that the demand remains high. According to Knight Frank it is possible that local buyers cannot afford to buy a property due to the high prices thus being forced to rent.

The second place in the ranking is taken by Singapore. The Asian tiger went up 19 places from 2006, when it was 21st. Real estate prices in Singapore have upped by 27.6% on an annual basis. The third place is occupied by South Africa which went up 6 places since last year.

The global index shows that as a whole the price increase is slowing down worldwide. In the last 12 months real estate prices went up by 8.2% compared to the 9.6% as of September 2006. The main factors for this slowdown are said to be the increase of the interests on a global scale and the stricter lending conditions.

Western European markets, which boasted a price boom until recently, had a rough landing this year. The Irish market went down by almost 1% while a year ago it witnessed a 15-percent price growth. Prices continue to fall in Germany as well, which traditionally is at the bottom of the ranking, while the prices in the Scandinavian countries remain stable.

Despite the mortgage crisis in the USA experts are not registering a fearful price collapse in the country. In fact, for the third quarter of the year the prices have gone up by 1.8%.

Top 10 of the countries registering the highest real estate price increase

1. Bulgaria: from 14.0% (Sept. 2006) to 30.6% (Sept. 2007)
2. Singapore: from 7.4% (Sept. 2006) to 27.6% (Sept. 2007)
3. South Africa: from 13.9% (Sept. 2006) to 14.4% (Sept. 2007)
4. Spain: from 16.6% (Sept. 2006) to 13.8% (Sept. 2007)
5. New Zealand: from 8.6% (Sept. 2006) to 11.8% (Sept. 2007)
6. Croatia: from n.a. (Sept. 2006) to 12.1% (Sept. 2007)
7. Canada: from 9.8% (Sept. 2006) to 11.7% (Sept. 2007)
8. Norway: from 14.1% (Sept. 2006) to 11.7% (Sept. 2007)
9. Sweden: from 9.2% (Sept. 2006) to 10.9% (Sept. 2007)
10. United Kingdom: from 8.1% (Sept. 2006) to 10.7% (Sept. 2007)

View our hottest offers
  Read more news

Share
Borovets Gardens 2 - the second phase of the popular complex
Feel at home in Borovets! Buy your own vacation apartment in one of the best rated complexes in this top mountain resort. Progressing construction with planned completion in December 2020 for the new winter season. A wide range of available apartments at attractive prices, suitable for rental income.
See More
Belle Epoque Beach Residence
French style beach–front residence in the popular beach resort of Lozenets on the Southern Black Sea coast. The complex is completely finished and fully operational. There is a special offer for Summer'2019 – guaranteed rental of 5% annually.
See More

More News

latest news
Official non-working day in Bulgaria

We would like to inform our clients and partners that 22nd September is a National Holiday in Bulgaria in celebration of the country Independence and 23th September will be an official non-working day.

On this day our offices will be closed. We will be back on Tuesday, 24th September.

Please be advised that during the official holiday the banks, the notary offices a...

19 September, 2019
Company news
BULGARIAN PROPERTIES Agents of September

Hello, September!

The new season has begun and we look forward to seeing you at our offices around the country to fulfill all your real estate dreams and to help you buy, sell or rent property easily and securely, with the highest protection of your interests!

Let's see who our AGENTS OF SEPTEMBER are that we recommend with two hands!

All of them deserv...

04 September, 2019
latest news
Bulgaria Air Launches Joint Flights to Caribbean, Seychelles and Maldives with German Condor

Bulgaria Air starts offering flights to some of the most exotic destinations in the world. The Bulgarian airline has signed an agreement with the German airline Condor, part of the Thomas Cook Group, allowing passengers from Sofia, Varna and Burgas to travel to exotics such as the Caribbean, Seychelles, Mauritius, Maldives and dozens of destinations in Malaysia, with convenient connections via Fra...

02 September, 2019
latest news
Foreign tourists choose to spend summer vacation in Bulgarian mountains

Whether because of the summer heat or the favorable conditions for mountain tourism, the number of foreigners who chose to spend their summer vacations in Bulgarian mountains is on the rise. A popular place is the mountain town of Elena, which attracts with its tranquility and authentic Bulgarian houses that have preserved the spirit of the National Revival period. Along with the Bulgarian tourist...

30 August, 2019

REQUEST DETAILS

Find a property with the biggest available choice
Choose what marketing communication you would like from us: