The property prices in Bulgaria have gone up with more than 25 % in general during the 2007. For one year some real estates have gone up with 50%, especially the ones in Sofia, in the Black Sea beach resorts (Sunny Beach) and in the ski resorts (Borovets, Bansko). During the last 3 years the improved economic conditions, political and social stability in Bulgaria brought to a real boom of the prices of property in Bulgaria.

Other important factor for the rising property market in Bulgaria is the huge tourism potential. There are great natural attractions - preserved rural areas, beautiful and clean Black Sea coast, high mountains. The foreign property buyers appreciate that Bulgaria is considered as the fastest growing tourism market in Europe. Bearing in mind the constantly rising prices, buying property in this Balkan country is one of the best investments. Only for the last two months the initial price of the properties for sale increased with another 10 per cent. Notwithstanding the prognosis of real estate experts for moderate pace in rise, the average price per sq m for Bulgarian property has risen with 7.5 per cent and now is 571 Euro.

The interest for commercial properties in Bulgaria continues to be strong and many commercial projects have been declared despite the slow growth of purchasing ability of Bulgarians. The capital Sofia is the leader in the commercial property area to be built until the end of 2011. In next three or four years commercial property area of about 517 thousand sq m will be constructed. The 144 thousand sq m are already in process of building. In the rest of cities in the country the investment climate is not much different.

In Varna all commercial centers area for rent is 202 thousand sq. m. Interestingly, all projects in Varna are in the West zone, not more than 2 km from each other. This will accelerate the competition for key tenants and maybe that will affect the rents. But there is also the possibility that some trade centers area stay unoccupied for a long time and this will reflect negative on their retail price.

Similar is the market`s atmosphere in Plovdiv where the estimated commercial area for rent is 164 thousand sq m. (87 thousand sq m. are already in process of building). Probably some of investors will turn from their first ideas and change the conception of their project or totally terminate the investment and construction. All these will result in reaching the point of saturation at the market of a trade area, as well as, appearance of rival projects with better location and strong key tenants.