REMI, the Bulgarian property market index has reached a new peak in July 2005 - 174.4. Even though the smallest gain since the beginning of the year it proves wrong sceptics about the Bulgarian market growth sustainability. Since its beginning in 2002, only once has the REMI index registered a negative growth - in November 2002. The fastest growth has been registered in July 2005 - 17 points.

  The REMI reflects various property market segments - residential properties, industrial properties and offices, as well as land. Unlike previous quarters when the driving force for the REMI index growth was the capital growth in residential properties, this time the index gains is result mainly from increased prices of land (both with OPR and/or DPP), as well as growth in prices of industrial properties and offices.

  During the first 6 months of this year price of land, with existing OPR and/or DPP, in some regions of Bulgaria has almost doubled. This is now a common phenomenon including most regional centers, reflecting the very limited availability of land suitable for development in the bigger cities. Increased is also the demand for agricultural land without OPR/DPP, where speculatively such building permissions are expected. Sometimes these expectations are even calculated in the asking price. A significant growth has also been registered in the industrial properties and offices segment of the market reflecting the economic boom of Bulgaria.

  A significant boost for the property prices and market development in Bulgaria has been the accessibility of mortgages widely offered to everyone in the country in line with the dramatic credit expansions of all banks. Mortgages at the end of 2004 have reached BGL1 billion (&euro 0.5 billion), which is BGL400 million (&euro 200 million) increase for only 6 months.