2011 The Year for Bulgarian Property

Bulgarian property hit a boom period after joining the EU but has now seen prices drop dramatically and forecasts by property experts say they will hit an all time low in the first three quarters of 2011 before increasing in the final quarter of the year.

When Bulgaria joined the European Union in 2007 prices began to rise dramatically, in fact the average price per square metre rose from 988 BGN per square metre in 2007 to 1,428 BGN per square metre at the end of 2008. This rise was a colossal 44.53% increase in just over a year.

As with all nations the financial crisis hit and this saw demand drop dramatically as job security and income dwindled, not only in Bulgaria but also from foreign markets such as the United Kingdom where many foreign investors in Bulgaria property came from.

This drop in demand meant the price of apartments in Bulgaria dropped also with prices currently of that in 2007, in fact current prices are 960 BGN per square metre. Experts believe that the crisis will continue until the end of 2011. This will see Bulgarian property prices drop further until all other markets can recover and people gain financial security and access to credit.