Investments in real estate bears return in two ways – from rent and from property price increase.

A property's price growth depends on demand and, on the other hand, on the potential rent revenues.
In this way, we may say that properties are to investors what dividend is to shareholders.

Investors typically head to countries where return from property rents is greater.

We can see that the situation on the Bulgarian real estate market has gotten quite complicated in recent years, due to the considerable increases of property prices.

The hike in real estate prices is greater than the increase in rent prices, which destabilizes the market. In 2007 and 2006 Bulgaria was among the countries with greatest price increases in the world.

Rising foreign interest in Bulgarian properties, especially after the country's accession to the EU, caused prices to go up by more than 35% in a year.

According to Global Property Guide, however, the rising prices reduce profitability from renting. In these terms Sofia ranked 60th in the website's global chart of rent return.

Return from renting properties in Sofia averages an annual of 5.87% , ranking our capital immediately behind Warsaw, Stockholm and Tallinn.

Among European capitals, Kishinev ranks highest with 14.36%, the global leader being Tahiti with 15%.

Number one among EU countries is the capital of Slovakia – Bratislava with 10.06%. Bucharest also beats Sofia, ranking 29th with return at 8.17%.