Housing Market Boom in Burgas, Bulgaria
The city of Burgas, situated on the Black Sea coast, has outpaced Sofia and Varna in the number of construction permits issued in the third quarter of 2005, shows an economic research.
Together Sofia, Plovdiv, Varna and Burgas stand for 58% of all construction permits issued in the second quarter of 2005, Industry Watch concludes in its latest analysis.
With a focus on the housing market nationwide, the analysis reports that housing prices follow a pace of 44% growth on an annualy.
Meanwhile, the purchasing power of the average income, so far as housing is concerned, marked a decrease of 8.2% in the first quarter of 2005 compared to the same period previous year. On an year-per-year basis the slump stands at 43.2%, says Industry Watch.
Differences in housing prices, similar to the price of labor, are in the long run caused by the capital local concentration. In Sofia, the relatively expensive labour and the relatively high cost of living have both the same cause - compared to other major cities, labor productivity in the material productions is higher in Sofia .
Industry Watch notes that housing crediting characterizes with stability in view with the monetary restrictions by the fiscal system.
