Prices for the residential properties in Bulgaria registered an increase of about 7 percent since the beginning of the year, data of the National Statistical Institute show.

The average price paid for residential places across the country reached EUR 1300/m2 in the period January - March 2008.

As it was earlier announced, the most expensive properties are those in the capital city of Sofia as their prices are expected to continue their upward march and their annual growth by the end of the year is forecast to range between 10% and 20%.

The growth in prices can be attributed to the brisk demand by well-off people and insufficient supply, Lachezar Bogdanov from Industry Watch explained.

According to Bogdanov, investors' interest is high in developments in the big cities, particularly in the capital Sofia and the Black Sea town of Varna, which register the highest residential property prices.

The average price of the residential properties stood at EUR 737/m2 in 2007 compared to EUR 624/m2 in 2006.

Capital Sofia, which boasts the highest salaries in the country, benefited from the real estate boom and recorded the highest rise in prices last year - 25%, reaching an average price of EUR 835/m2.

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