Guardian reported for a steady increase in the property prices in some of the European countries in 2006. The price growth is seen in 26 European countries and Bulgaria, Poland, Estonia and Denmark are among them, according to The Royal Institution of Chartered Surveyors.

The main reason is that a high number of West European investors have been moving to the East and are looking to buy a property there.

The registered increase of property prices in Poland amounts to 33% and the most remarkable increase is in the "ancient royal capital" of Krakow, where 58% price growth was registered, according to the report.

For Bulgaria Property the average price growth was about 36.7 % as the value of apartments in Vidin raised the most, by the amazing 64.7 per cent.
In Scandinavian region there was also increase. As an example the property prices growth in Denmark reached 22 % in 2006.

For the coming year experts predict the market to remain active.

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There is huge increase in the tourist numbers (amounting to 22% a year) as well as in the property prices in Bulgaria (about 30% in the recent 3 years). The managing director of Quest Bulgaria- Chris Goodwall estimates investment in Bulgarian estate as good transaction because of the demand for right located and good rental properties in the country, but only for those buyers, who have realistic expectations about the rental returns.

Of first importance for obtaining good rental prices, more bookings and best resales during the next few years, is the property location. Front line properties right on the beach, or near to the ski gondola, as well as rural home with easy access are the gainful investments. The quality is also one of the most important requirements.

The rental cost for a tree-bad-roomed coastal villa is about 550£ per week, for a 3 bed-roomed rural villa- £350 per week and for a city or coastal renting out apartment £250 per week.

To buy an equivalent property in Bulgaria the customer will have to pay up to 25% less than in UK and achieves not only a beautiful home, but also an investment with rental returns at least 5 % and capital growth of 20 %.

A major Bulgarian property developer prompt some commentators to exalt the investment potential of the eastern European state, by reporting that its pretax profits stood at £38,000, a marked increase from last year` s £273,000 loss.

An investment expert has hit out in his note of caution at the "massive amounts of misinformation" about the supposed huge gains being made in the Bulgarian Real Estate market.

Of course there are also some risks because of the purchases number increase. So a real estate agent alerts the buyers to be suspicious of promises for 10% guaranteed rental return and to expect the more realistic 5 % and also census the owners to be savvy by setting the rental price in order that they get more bookings..

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