• Rapidly growing sector attracting serious foreign and domestic investment
• Large percentage of FDI locating in real estate.
• 1,5 million m2 new construction completed in 2005
• 2 million m2 new construction expected to be completed in 2006
• Massive construction in the main tourist areas

1. Black sea
2. Mountain resorts
3. Larger cities especially Sofia, other cities are following

• Relatively cheap cost of land, prices have been going up lately
• Relatively cheap cost of labor – Average salary – 400 Euros
• Relatively cheap cost of construction – finished construction comes at $250-300 Euros per square meter.
   
• Lack of modern facilities trivial to Western Europe (shopping centers, service centers, modern office buildings, high quality residential areas and so on), has fueled construction demand
• Great price difference between Bulgaria and Western Europe, making buying of real estate in Bulgaria a very attractive investment for EU countries.
• Bulgaria is rapidly becoming a fashionable property investment location for EU countries, especially the UK, Ireland, Germany, the Netherlands, Greece and Italy.
• There are already UK investment funds locating money in Bulgarian real estate. Example: Equest Balkan Properties: 200 million Euro fund.
• The real estate market will need continued interest from foreign investors to sustain its strong price appreciation.

Overall, there is a very good return in real estate investment in Bulgaria, oftentimes over 100% +.

Cost of basic construction
The average cost of construction in Bulgaria for a quality building with construction done, wall plastered, and ceilings done is
250-350 Euros per m2

Additional costs
The additional costs of construction like bathroom modeling, hardwood floor installation and all others comes to another
50-70 Euros per m2

At present it is a safe assumption that new construction costs an average of
300-425 Euros per m2