23.11.2007

Bulgarian residential property still commands the lowest prices in the EU despite an  annual 21 per cent price hike over the last five years. A top-quality home, which had fetched no more than 150 000 euro in 2005, practically doubled in price to 300 000 euro one year later. A major impetus to rising house prices was Bulgaria's EU accession at the beginning of 2007, when demand briefly outstripped supply. In 2006 alone, house prices rose by an average of 15 per cent after the registered 40 per cent jump the year before. Bulgarian residential prices had tripled over the last five years. The same trend has continued this year. Some Bulgarian cities posted a 25 per cent increase in property prices in Q1 2007. The market value of old homes remained steady while upmarket  properties gained 10 per cent year-on-year in Q1 2007. Although Bulgaria has some of the lowest prices on the continent - with an average property unit offered at only 54 570 euro - low average earnings render properties expensive for Bulgarians. Bulgaria's average annual wage stands at 1 884 euro. This means that it takes about 29 annual salaries to make a property purchase in the country, whereas in the UK a home acquisition represents only 9 years' wages.