Investors looking to buy property in a European capital city should take a look at the Bulgarian city of Sofia. Latest research by ERA has shown that Sofia is the cheapest capital city in Europe for property meaning there could be bargains to be snapped up.

Recent figures from the National Statistical Institute (NSI) show that across the whole country, property prices are rising with the first two quarters of 2007 showing growth of around 5-6%. Prices in Sofia are around 1, 648 leva per square foot – that’s about €78,000 for an apartment; A similar apartment in Luxembourg would set a property buyer back around €485,000.

With the news that budget airline EasyJet set to start flying into the capital city late this year, tourism is expected to increase, particularly those looking for weekend breaks. This will help push property prices in the capital even further helping property investors realise excellent return on investment in a short period of time.

Sofia has a good mix of property for sale – from off-plan purchase right through to fairly old apartment blocks. There is an under-supply of new apartments in the city centre therefore if you are able to buy off-plan, there may be a quick return to be made. If not, expect to pay around $50,000 for a one-bedroom apartment. Rental incomes vary, but choosing carefully can net you a rental income around the 8% mark.

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