The impact of Bulgaria's EU accession on the property prices was 'consumed in advance,' Industry Watch research service said in a report.

Property prices in Bulgaria would increase by 12 to 15 per cent in 2007, Dnevnik said.

The prices would follow or would exceed a bit income increase pace, the analysis said.

Increase in the price of property depended on macroeconomic factors, such as inflation and prices of production materials. The prices of production materials prices went up 28 per cent each year, Dnevnik said.

Productivity and economic growth also had influence on the property demand. Economic growth was relatively unpredictable, but its influence on property prices would remain unchanged.

Another factor that has an impact on the property market was the easy manner in which investment could enter Bulgaria, Dnevnik said.

The number of permits issued for residential property construction was increasing by 30 per cent. Property investors managed to adapt to the market needs and property construction was following the price change pace.

A significant price increase was improbable.