The average price of land plots suitable for construction near Sofia has increased between 10 and 15 per cent since the beginning of 2008, Era Izida Properties has said, quoted by website investor.bg.

Despite the abundance of offers, plot prices in nearby villages suitable for building summer houses and homes keep increasing. In the village of Rudartsi, near Sofia, for example, land sells for between 60 and 70 euro a sq m. The villages of Dolni and Gorni Lozen also provoke great interest because of their traditionally cleaner air and mountainous views, the agency said. In that area, as well as in Bankya and Pancharevo, there are several holiday villages at the construction phase.

According to Yavlena real estate agency, demand for land plots on which to build residential property is beginning to subside as investors become more cautious and await market developments. Great interest, however, has been displayed toward areas suitable for the building of warehouses.

Due to high prices investors prefer to come to an agreement with the owner of the land plot, offering them a compensation of several apartments within the planned building, instead of purchasing the land. However, such agreements are rather rare, Yavlena said.

Prices in various areas might drop by 20 per cent, some brokers have said, without specifying the locations.

Mirela real estate agency has said that land plots with water and electricity supply about 15-20 km from Sofia are deemed most desirable by investors. These sell for more than 100 euro a sq m. Agricultural land with the potential to change its purpose runs from 30 to 300 euro a sq m.