Price increases in the lodging property sector worldwide slowed down in the first quarter of 2008 to reach 6.1% on an annual basis. But Bulgaria still heads the price hike. The price increase registered in Bulgaria was 31.5% for the first quarter of 2008.

Bulgaria also occupied first place in the same ranking for the last quarter of 2007 with a 33.7% price increase.

Singapore ranked right after Bulgaria with a price increase of 29.9% year-to-year, followed by Hong Kong with 28.8%. The other EU member state, which featured highest in the list, was the Netherlands, which occupied 14th place with an increase of 4.5%

In the six month period from the beginning of the year, rental rates for residential property have increased. The professionals, however, have not been unanimous in their prognoses of how the situation would change in the second half of the year. Some say that further increase is to be expected, others do not anticipate changes.

Representatives from real estate companies predicted 10 to 20% rent increase until the end of 2008, considering that according to the agency’s survey, for the first six months rents have gone up close to 30%. The statistics show that compared to last year, rents in Sofia boroughs Lozenets, Studentski Grad (Students’ town), and Vitosha have shot up by 40%.

Varna has presented a data summary indicating that for the first six months of the year rents have increased by 19%. Potential tenants demand higher quality of the offered rental property, but regardless of whether such quality is offered, rents in Bulgaria’s bigger cities will steadily increase by 10 to 15% a year. One of Sofia’s main characteristics in terms of rents is that demand in the capital is not seasonal, but rather constant.

Apartments in the Sofia’s central areas are most in demand, despite the fact that three-bedroom residences run for 700-800 euro a month, whereas for many-room flats, prices could reach up to 1200 euro monthly rent. Similar prices are asked in the Lozenets and Iztok boroughs. Mladost is preferred by employees of Business Park Sofia seeking middle-class property for a monthly rent between 250 and 400 euro.

Price increases in the lodging property sector worldwide slowed down in the first quarter of 2008 to reach 6.1% on an annual basis. But Bulgaria still heads the price hike. The price increase registered in Bulgaria was 31.5% for the first quarter of 2008.