Bulgaria sees increase in affordable home popularity

The vast majority of real estate transactions in Bulgaria in the last four months have been for low-cost, affordable property, new figures have suggested.

Data released by ERA Real Estate has shown that 86 per cent of homes purchased between October and January were valued at up to 70,000 EUR (62,000 GBP).

According to the firm, many banks in Bulgaria are refusing to lend more than 60 per cent of a property's value, which has forced buyers in the country to focus on cheaper homes.

However, chief executive of ERA Teodora Dimitrova also revealed that the cost of new-build Bulgarian properties has fallen by 15 per cent since the start of 2009, news that may be welcomed by property investors considering making a purchase in the eastern European country.

The news follows a recent report by the Sofia Echo, which stated that the cost of real estate in Bulgaria has fallen in 23 of the country's 28 regions.