However, last year it seemed as though the trend of buying property Bulgaria was starting to wane, with many reports in the media stating that the market was beginning to slow, and that the supply of properties in some areas was by far outweighing the demand.

However, James Gonzales, the market analyst at emerging property specialists Obelisk, believes this is far from the case. "Last year, Bulgarian property realised a 34% property price growth with a projected 15% to 20% for 2008," he explains.

"Investment pouring into the country. Infrastructure funding from both private and public funding is opening up new areas, and commercial development is springing up around the country's cities following the influx of large blue chip companies relocating to take advantage of lower operational costs," Gonzales adds.

While it's true that some of the lower-priced property developments in some of Bulgaria's major resorts -especially on the coast - are not as popular with buyers as they once were, interest in properties in cities such as Sofia, the country's ski resorts, and some of the more luxurious coastal homes are still much sought after, particularly by those interested in the investment potential of such homes.

"There is increasing evidence of the growing demand for larger and more luxurious properties, front-line or within close proximity to ski centres, confirms Gonzales.

"Additionally, rising demand is originating from foreigners working for multinationals in Sofia and from Bulgaria's emerging middle class, for properties within commuting distance to the capital. This growing demand for top-end properties is stimulating developers to push up quality levels in new properties, with a number of developments now offering good design and build qualities."

Of course, one of the main factors keeping purchasing interest in Bulgaria fairly strong is the fact that property prices are still generally lower than what you would expect to pay in more established markets.

"Despite such rapid price growth, Bulgarian property investment remains very competitive and highly profitable in comparison with other European markets, giving the country a long-term profitable investment edge," says Gonzales. "Luxury properties are still within an affordable range for many overseas buyers, compared with more traditional markets. A luxury apartment in Sofia's commuter belt averages around £100,000 - you would be hard pressed to find a good apartment in the Costa del Sol for that price."

Currently a studio apartment in the Capital 69 development in Sofia (pictured) would set you back £34,527, while a two-bedroom penthouse would be £91,070.

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Article first published 09 May 2008