ARTICLES 
Black Sea's Burgas Leads Housing Market Boom
www.novinite.com, 29th September 2005


The city of Bourgas, on the Black Sea coast, has outpaced Sofia and Varna in the number of construction permits issued in the third quarter of 2005, according to an economic research.
Cumulatively 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 shows that housing prices follow a pace of 44% growth on an annual basis.
Meanwhile, the purchasing power of the average income, so far as housing is concerned, marked a decrease of 8.2% for the first quarter of 2005 compared to the same period last year. On an year-on-year basis the slump stands at 43.2%, Industry Watch says.
Differences in housing prices, similar to the price of labor, are in the long run a result of the capital accumulation. In Sofia, the relatively expensive labour and the relatively high cost of living have both the same cause - labor productivity in the material productions is higher in Sofia compared to other major cities.
Industry Watch points that housing crediting characterizes with stability in view with the monetary restrictions by the fiscal system.

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