| Plovdiv, officially the second biggest city in Bulgaria with population about 0.5 million was one of the few Bulgarian cities where property prices growth had been insignificant compared to most other Bulgarian regions and towns. This seems to change now with reported average growth of 46.5% during January – December 2007. It signifies that Plovdiv will finally catch other major cities and will probably become a dynamic property location.
The most sought after properties in Plovdiv are one-bedroom apartments in the central part of the cities with prices around €950/sq.m., which is a staggering growth of almost 65% compared to prices an year ago. Plovdiv will most likely follow the development patterns seen in other cities – growth in the central area, followed by gradual development of the suburbs. Prices of apartments in the suburbs currently have reached levels around €600-850/sq.m., depending on location and condition and two-bedroom flats are the most sought after properties in the suburban areas. This shows that investors are prepared to put down around €60,000 – 70,000 either for a one-bedroom flat in the central zone or two-bedroom in the suburbs.
Behind the numbers and percentages lies the strong economical potential of Plovdiv which has attracted major investors and has good communications with the rest of the country. One has to bear in mind though, that property prices boom in Plovdiv, as well as the growth nationwide should take into account the higher than usual inflation this year – officially about 6-7%, but probably even closer to 10%. This however, still leaves enough for a spectacular return on the investment.
What is to follow? Drive for price growth has relatively healthy components. Very few foreigners are attracted and active on the Plovdiv property market. Fundamentals show prices being driven by increased crediting by banks, strong economic background and expectations that prices will at least stay at these levels. |
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