The REMI Bulgarian properties market index has reached a new peak in January 2008 – 152.8. This is the logical consequence of the dynamics of the Bulgarian properties business during 2004. The index reflects not only the sharp rise in property prices in Bulgaria, but the number of completed deals and property related transactions. During 2007 the number of properties sold has reached 190,000 and total market of over BGL 6 billion (€3 billion).
The greater part of the property transactions in Bulgaria are still in the capital Sofia with 13% (25,000 completed transactions). As in the rest of Bulgaria, the major driving force in the property market are the residential homes and flats. A sharp increase has also been registered in the market of plots of land with existing building permission. This is especially true for Sofia, as well as the other major Bulgarian cities.
The sharpest rise in the REMI property market index has been registered during the period April – June 2007 (13.8). The factors contributing towards the demand and supply of Bulgarian properties include the continuous increase of the country’s investment rating by the major rating agencies, the dramatic and sharp increase of direct foreign investments mainly from Germany, Austria and Italy, and the favorable political changes during the last 2-3 years in the country.
A significant boost for the property prices and market development in Bulgaria has been the accessibility of mortgages widely offered to everyone in the country in line with the dramatic credit expansions of all banks. Mortgages at the end of 2007 have reached BGL1 billion (€0.5 billion), which is BGL 400 million (€200 million) increase for only 6 months.