This development will be Bulgaria's biggest trade centre once it is completed. This will be the latest in a long line of top-class modern developments to be planned or built in Sofia, as Bulgaria's capital continues its transformation from a former Eastern Bloc city into one more reminiscent of Western Europe.

In recent years new projects such as the Business Park Sofia – a high-tech business park made up of 35 buildings – along with a number of brand new residential buildings have made the city a more attractive destination for property investors. "Sofia has a very dynamic property market at present," states Lance Nelson of Jet2Let Property, who notes that properties close to the city's new business districts are popular with investors. "Owning a property close to the fast-growing business districts ensures business travellers have accommodation close to where they need to be," he says.

According to recent data released by estate agency Colliers, sales prices in new, emerging neighbourhoods in the southern part of Sofia – close to where the Business Park is located – currently average around 1,000 euros per square metre. Areas such as Doctor's Garden, Ivan Vazov and Lozenets both experienced solid double digit growth levels in the first half of 2007. But what does this mean for older properties in Sofia? Is there any merit at all in considering the purchase of a precommunist era property? "You do not have to buy new apartments in Sofia to get a good investment," answers Nelson. "Older apartments in the centre of Sofia may actually turn out to be a better investment for some buyers." Nelson does, however, have some words of warning for those who do choose to explore the older property option. "Some older properties are in a poor state of repair and there is a chance that they're not structurally sound. But not all communist-era buildings are poor. Many can be improved by renovation and through the adding of insulation." He also says that not everyone will find such properties to be a better investment. "While many older properties are in excellent locations for investment purposes, they can be more problematic for investors [than newer builds].

Problems include maintenance, which will be virtually non existent, and the fact that generally your rental market will be mid-income Bulgarians rather than expatriates. "Most investors would be better advised going for a new build close to good transport and amenities such as shopping centres and office areas," he adds. Over the past 12 months, older properties in Sofia have certainly become more popular with investors. A recent report stated that prices of older properties in Bulgaria's big cities had risen by 7–8 per cent in the first two quarters of this year.

So, while flashier, modern properties may certainly be more appealing, investors interested in Sofia may not want to totally rule out the purchase of an older property just yet.

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Article published November 2007