Plovdiv Properties Have Highest Return Rates

29.04.2008

Investing in real estates in Plovdiv has highest return rate compared to other big cities in Bulgaria. According to a realty survey for the last one and a half year covering all big cities in Bulgaria, the return rate for new residential properties or office premises is estimated at 10,5% average.
Plovdiv beats Sofia's income ratio with only 2,5 points, while compared to Varna the difference is 4 points.
The main reasons for this are said to be the presence of new international companies which are currently entering the Plovdiv market and therefore looking for first-class premises, the low selling prices, compared to the relatively stable rents. The city has also a working economical environment, which is of vital importance to the property market.
According to real estate consultants, the average office rent in Plovdiv is around 8 Euro per sq.m, which indicates a 10% growth since the beginnng of the year. Selling prices are between 600 - 2000 Euro per sq.m, depending on the location.
Although new real estates projects are expected to emerge in Plovdiv, prices of residential properties are not likely to go up, since the average income per capita in Plovdiv has not raised signifficantly. Price increase is expected only for luxury residences and properties in the heart of the city.

---