Home prices in Burgas rose 11% in 2007 to an average of 596 euors/m2.

In 2006 the hike was 7%, according to data provided by Address Real Estate Agency.

Burgas has the widest gap between prices of new and old construction among the four largest cities in Bulgaria. Existing homes cost an average of 25% more than newly built ones.

The average price of new construction homes rose nearly 31% last year. The central areas of the city are already tensely built, which led to lower vacancy rates compared with previous years.

Interest in commercial real estate was much stronger last year, especially for properties located in the central parts of the city, where availability is significantly lower than demand. The average price per m2 there varied between 900 and 2000 euros, depending on the condition of the property.

The most active sector, however, continues to be that of residential properties.

Prices of terrains in the city's industrial areas range between 50 to 300 euros per m2, depending on the exact location.

Demand from foreign citizens has been strongly on the rise. Foreigners are mostly interested in village houses, apartments and land plots. The majority of foreign buyers last year came from the former Soviet republics.