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Bulgarian property sees second highest rate of world growth

The Bulgarian property market experienced the second highest rate of price growth of all the major international real estate sectors in the third quarter of 2006, with increases of 19 per cent taking place, it has been revealed.

According to the Knight Frank global house price index, Latvia experienced the most substantial growth at 39.2 per cent, with Denmark in third place at 17.8 per cent.

The research group explained that the Bulgarian property market has seen a combination of domestic and international demand, which has supported price growth.

It has also experienced a similar process of wage inflation, growing prosperity and easier access to mortgage finance that has taken place in Latvia.

The overall appetite for second homes, whether they are for investment purposes or personal use, "continues unabated" according to Knight Frank, as low-cost air travel continues to be freely available and supply of residential property continues to grow.

The picture painted by the index was not an entirely positive one for the international real estate market, as some sectors experienced reductions in price inflation. Growth in Japan, Hong Kong and Germany, for instance, slowed by 2.2 per cent, 2.6 per cent and three per cent respectively.

Despite this, Knight Frank is "upbeat" about prospects for 2007, with no major shocks visible in the international property market at the current time.

About the Author: Anthony writes for , a Bulgarian property portal with both news and properties for sale.

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