Bulgaria 'offers capital growth potential'

Foreign property buyers may be able to get strong capital gains in Bulgaria, as house prices across the country are still rising steadily.

According to official government figures, property values in the eastern European nation rose by 5.9 per cent between April and June 2008.

Data cited by the Novinite news agency also showed that some parts of Bulgaria saw an above-average rate of house price inflation.

For example, values in Sofia rose by 6.9 per cent, while prices in Kyustendil went up by more than twice this amount.

The figures are likely to welcomed by foreign property buyers who have invested in the Bulgarian market.

Second home owners will find that their purchase is now worth more than the original asking price, which means they could sell it on at a profit if they choose.

Bulgaria, which joined the European Union in early 2007, was recently found to have seen the largest rate of house price inflation in the world.

The Global Property Guide revealed that last year, property values increased at a higher rate than in any other country.