Credit costs tame Bulgarian housing market

After the banner 2007 when transactions involving residential property rose 4-5% and prices jumped by about 30%, the Bulgarian market in 2008 is calmer and more balanced as the cost of borrowing increases, said Teodora Dimitrova, managing partner at the Era real estate agency. The softening of the market is also evident from the growth forecasts for 2008. Housing prices are expected to continue on the up, adding 15%, a pace twice as slower than last year's. 'Demand and supply on the residential market have reached a parity over the last two months,' said Dimitrova. Data of the Era network of real estate agencies indicates that the busiest residential markets are those in Sofia, Burgas and Varna where construction is also most intensive. Sofia homes start from 670 euro/sq m