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Rental Yields up in Bulgaria

Latest research shows that property buyers in Bulgaria are enjoying ever increasing rental yields. There has been a significant rise in demand for rental properties in Bulgaria, according to analysis produced by Address Real Estate Agency. The report shows that between January and October this year the number of property rentals has increased by 12% year on year. Address say that the main reason for the high increase is a drop in property sales because of the credit crisis and the lack of clarity as to how the market will develop.

Two bedroom flats were the most popular with demand up by 14% in the period, whilst a 6% drop was noted on one bedroom apartments. Larger, three bedroomed apartments showed an increase of 3%.

The report went on to show that the Black Coast city of Varna reported the highest rise in rentals. Rents in the city soared by 13% with the average price per sq.m at 5.4 euros. Behind Varna, came Bourgas with an 11% increase. The average rent for apartments are 3.9 euros sq.m.

Sofia only marked an 8% increase in rents and an average of 5.21 euros sq.m.

The market is witnessing a shortage of luxury apartments preferred by foreigners but that hasn't stopped rents rising. Apartments in Sofia’s central area are most in demand, despite the fact that three bedroom properties are renting for 700-800 euros a month. Similar prices are asked in the Lozenets and Iztok areas. Mladost is popular with by those working in Business Park Sofia, who are looking for property at a monthly rent of between 250 and 400 euros.