Sofia is a capital city in the EU which offers the highest returns on investment (all year round rental market).

The significant increase is propelled by a number of factors: steady domestic demand (steadfast internal migration towards the capital), hefty foreign demand (intensive outsourcing activities of foreign multinational companies) and the interest of Bulgarians working abroad, robust investment growth and GDP growth, rise in mortgage lending (increasing by almost 100 per cent annually) Sofia is home to 1.3 million of Bulgaria's 7.5 million population.

Due to the exceptional growth of the city, demand for housing is healthy. The last year (2006) has seen capital appreciation averaging 22% per annum in Sofia, yet real estate prices are still among of the lowest in Europe.

It still boasts the lowest real estate prices per sqm in Europe. An apartment in the best part of the city would go for 2500 € per sqm (5000 € in Zagreb, 6000 € in Prague, 4000 € in Tallinn, 4500 € in Budapest, 6000 € in Riga, 4500 € in Warsaw).

» Growing population: Sofia is home to 1.5 million of Bulgaria's 7.8 million populations. Due to the exceptional growth of the city, demand for housing is healthy.

» Increasing disposable income for the Sofia population: Average salary at 400 EUR per month (twice the national average), booming economy with unemployment at just 2.5%.

» Unempoymenty rate at below 3%

» Increasing foreign and EU investments: moving into transport and infrastructure improvements : upgrading of the Sofia ring road, new subway system upgrade

» Increasing office space supply (and demand) for a growing number of international companies setting up branches in Bulgaria: 100% increase in supply over the next 3-5 years.

» High rental yields: EU membership (influx of diplomatic staff and multinational companies to the city), corporate lets, migrating Bulgarians are boosting the rental demand

» Excellent return on investment (Sofia): capital return in 2006 (+22%), in 2007 (+32%), + 15 forecasted for the next 3-5 years

A bigger rise is forecasted in the prices of the luxurious properties, with good location, built of high quality materials. The segmentation of the market is likely to deepen and the quality will become the leading factor when choosing a property in the future.

Sofia airport:

  » 35% increase in Sofia Airport passenger numbers in 2006, up from 1.6 (2004) to 2.2 (2006) million passengers.

  » direct flights to/from all major european capitals.   » low-cost European airlines now fly to Bulgaria: Easy Jet, Sky      Europe, Wizz Air (Ryanair will fly soon in Bulgaria).

International companies including Shell, Microsoft, Google, Hewlett Packard, Nestle, Porsche, Deutsche Bank, GE Capital, Ernst & Young, Citibank, Coca Cola, Nokia and Siemens have all recently set up offices in Sofia, showing the confidence these companies have in the region.
With its smooth transition into the EU, Bulgaria has become one of Europe's fastest-growing markets.

The capital city of Sofia has experienced explosive property price appreciation in the past 12-18 months as foreigners are increasingly attracted to the city.