Mortgage crediting in Bulgaria will grow by 110 per cent within the next two years, a major report of financial group UniCredit for Central and Eastern Europe showed.

The volume of mortgage market in the end of 2006 was 1.8 billion euro. According to expectations, it will further grow reaching nearly 3.8 billion euro, Pari daily reported.

Mortgages will steadily increase reaching nearly 44.7 per cent of the total volume of loans within the country's economy by 2010. So far mortgage products represent 36 per cent of all loans.

Chief executive officer of UniCreditBulbank Levon Hampartzoumian said that mortgage credits have potential for development because Bulgaria features among the countries with high percentage of private homes.

The economic development of Bulgaria, which increases the demand for residential property, also stimulates activity in the sector, Hampartzoumian said.