In Jan – March 2008 FDI stood at 333.4 mln euros, which is the lowest quarterly level in more than two years, according to the report.
The main reason for the slow down in the sector, which was used to be one of the fastest developing in the country, is believed to be the global mortgage market crisis.
Investments in the sector are also getting more expensive as interest rates all over the world are rising, as a result of the central banks' efforts to battle inflation.
The slowdown is expected to continue during the summer, which is traditionally a weak period for the sector.
Experts believe the situation may improve in autumn, but only if international markets rebound as well.
The past year was a record one for Bulgaria in terms of investments in the real estate sector, which stood at 2.15 billion dollars.
A report released today stated that the increase in property prices in Bulgaria in Q1 this year has slowed down to 15%, compared with a 30% y/y hike recorded in Q4 2007.