Property prices in Bulgaria have increased by more than 200 per cent in the last decade, according to new data from a leading Sofia based estate agent. This stunning growth outstrips many other European countries and is despite significant falls in values since the global financial crisis of 2008.
Residential property prices grew 201 per cent on average between 2000 and 2010
Sofia based agents Bulgarian Properties analysed figures from the Registry Agency and the National Statistical Institute to come up with the data. They found that house prices in Bulgaria rose sharply between 2000 and the third quarter of 2008 before values declined during the global financial crisis.
The overall average growth in the country during the decade was 201 per cent.
Polina Stoikova, chief operating officer at Bulgarian Properties, said: ââ¬ÅWe witnessed a very dynamic decade for the Bulgarian property sector, which brought about a drastic surge in prices and in number of deals, as well as more dynamism to the building sector, followed by a steep contraction in the last two years.ââ¬Â
Strong growth in early 2000s followed by sharp decline
The property market in Bulgaria really began to take off in 2003 with double digit growth. Values then increased by 47 per cent in 2005, 28 per cent in 2007 and 24 per cent in 2008 before a decline of 22 per cent in 2009 and 10 per cent in 2010.
Overall, house prices in the capital Sofia recorded a 171 per cent increase between 2000 and 2010, while the property market in Varna witnessed a 237 per cent growth.
The number of residential units in Bulgaria rose by 2.26 per cent between 2004 and 2009, with cities seeing an average rise of 3.94 per cent (compared to a decline of 0.56 per cent in villages.)
Property transactions have also fallen over recent years. Registry Agency figures show that sales of residential property were 45 per cent lower in 2010 than in 2007.
