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Bulgaria property news

 26.03.2008


Return on investments in residential properties in Bulgaria is getting more and more dependent on the fluctuations in the sale price than on rental yields, says a report of the Bulgarian economic think-tank Industry Watch. The report covers the residential market development in Bulgaria during the first three months of 2008.
Rental levels for two-room flats, which are in the heaviest demand, increased by 4% in the period from December 2007 to March this year.

The sale prices of residential buildings are recording a faster growth, extending the period during which an investment pays out from 188 to 234 months as a ratio between the purchase price and the rental levels.

According to Industry Watch the credit crunch in the United States has had a negligible impact on the Bulgarian property market, but negative influences have not been ruled out in the long term. Industry Watch forecasts a slow-down in the flow of foreign investments in real estate. Average annual growth in sale prices is set at 13-14% in the next five years.



Source: novini - news24.bg


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