This vibrant financial and commercial centre is Bulgaria’s largest city, home to the Bulgarian National Bank, the Bulgarian Stock Exchange, as well as some of the country’s largest commercial banks (such as Bulbank, DSK Bank and the United Bulgarian Bank).  The city accommodates nearly a quarter of the entire country’s population.

Manufacturing, construction, trade and transport are the primary sectors of the local economy. Increasingly, Sofia is attracting attention as an outsourcing location for Western European and American multinationals. Sofia is also the headquarters for major Bulgarian and international companies operating in Bulgaria and Eastern Europe.

Sofia population has doubled over the past 10 years and the unemployment rate in the city is only 3 percent, compared to average European levels at 10 percent. Sofia is tackling congestion challenges by improving the infrastructure (which includes a major new highway and bypasses) and transport links, including an underground railway network, which is expected to be operational by the end of 2007.

Over the past 18 to 24 months there has been a trend towards property investment in the capital.  As a result the real estate market in Sofia has achieved growth of up to100% during this period. Residential areas close to Sofia’s central business district have limited room for expansion as the EU ecological and preservation standards restrict mass development.  As a result, these areas are experiencing highest demand, particularly for premium accommodation which is in limited supply. Suburbs are expected to develop, and properties close to the central areas are expected to increase in value.

Newly built properties (particularly gated communities) have become the preferred option compared with the traditional purchase of renovated, older apartments. The first quarter of 2007 has seen an increase in the number of residential developments sold off-plan, expected to be delivered on the market within six to twelve month’s time.

Mortgage-financed purchases also gained momentum during the period. One and two bedroom apartments currently register the highest demand.

Property prices are still considered to be in their infancy stages of growth in comparison to other European cities.